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Rubberband

AXTI saw a massive pump this past week REVERSAL SHORTAXTI a penny stock in the semi-conductor supply chain business saw a great price gain this past week going more than 65% The call options ran 2000% on Friday along. On the 15 minute chart, I see signs it is in high overbought territory and setup for a reversal. Price fell below the longer of the two paired Hull Moving Averages which death crossed. The price volume trend indicator put in a massive bullish trend and then went flatline while the mass index indicator triggered a reversal. I have closed my call options and opened put contracts costing $130 each. I have considered that they could do 2000% a few days just as the call options did on Friday. Fundamentally, I beleive that semi-conductors have a down week ahead, see the idea uploaed for SOXS. ( If you wonder how i screened for and found AXTI like this idea and drop me a private message)
NASDAQ:AXTIShort
by AwesomeAvani
Will REX revert to the mean ?REX hit a 52-week high after an analyst upgrade. Was this enough to justify a 12% increase in a nonvolatile business, the ethanol production business to support its addition to gasoline to combat air pollution and so global warming. Production and so revenue is not accelerating although it may be a bit seasonal during the summer driving and vacation season. On the daily chart, RE put in a massive bullish bar with wicking above the third upper Bolliger Band set at 2.618 ( Fib level) standard deviations. REX did this on 5/25 and then dropped. I see it doing the same thing again. This demonstrates the version to the mean or "rubber-band" concept. I will stock trade REX short and look at the mid- October put options.
NYSE:REXShort
by AwesomeAvani
CZR ? - Questions for my powerful, smart menCurrently working on small coding project. An algorithm that filters stocks from the TSX, TSX Ventures and CSE who’s price closes below the lower Bollinger band (80). I’ve been reading some of the work from Matt at Trader University and he calls it the rubber band stocks. Even though the purpose of this project is merely recreational, it got me thinking of a few questions I need answers to. Please feel free to comment and leave your thoughts. I like learning from the experienced day traders out there. 1) what time period should i use if i want to shorten the time i hold the stock? I find that with the 80 day bolllinger, if the stock closes below the lower band, It usually takes around 4 to 7 days for it to bounce back to the middle band. My goal is to reduce my holding period for a maximum of 3 days. 2) the goal of the algorithm is to filter stocks that are being oversold in order to have enough room for the price to bounce back at least 1% per trade. Is this an unrealistic goal? My reasoning behind it: get a 1% weekly return, which annualized is around 56% when compounded without much risk involved. 3) do the experienced day traders out there even follow a certain strategy? Or do you guys make your trades based on other research?? If you follow a strategy, may a please have the name to research more about it 4) do the experienced day traders place stop loss orders? I’ve noticed that the algorithms from the institutional investors pick up on those orders just to fill them up and trade the stock up again. 5) if you use stop loss orders, what’s the level of risk you put into every trade? Even if you don’t actually set up a stop loss order, what’s the level of risk you are comfortable with before deciding to exit the trade at a loss? To my all my powerful and smart men reading this, please help this girl out with some answers. Please leave a comment or thought you think will help me :)
NASDAQ:CZR
by normaescobarca
11
DOC - Trying out RubberBand strategyI’ve been following Matt’s work from Trader University. In his book he goes into detail about this simple, yet interesting strategy. The strategy consists of buying when the price closes below the lower Bollinger band (80) and selling once it closes at the middle band. He usually holds for a few days or weeks, so this trade will be oriented towards swing trading. Here are some details of my position, once again I would appreciate any comments from the experienced traders out there! I love learning from people who know this way better than any book could possibly teach me. Current position: 1000 shares at 0.68. Exit target - 0.75. Stop loss at 0.64. If anyone out here has traded using this strategy before, please let me know if it was worked for you before. Or if anyone is familiar with this guy Matt, I would also be intrigued in having a conversation. Any thoughts?
DLong
by normaescobarca
5