Day 4 (1/8/2019):
I started today with $228 in my account. I started out with some smaller positions in Starbucks. I entered two positions into Starbucks calls at 9:35am at $44 as starter positions because the market was starting to trend upwards and entered into another two calls at 9:40 at $51. I was up about 8% on these before the market started to downtrend and I tried to sell out. I set a stop loss at $45 and thought it sold, it never filled and about 5-10 minutes later I realized this and tried to wait out for a better fill but got out at $28. Lesson, take profit if the direction of the market isn't completely set yet, and make sure you filled! But I'm not going into this trade as much because I'd like to spend more time on a new indicator I used to get this next trade. I started using the automatic trend lines that Ben put up in a different post, and with the tema/ema, macd, and supertrend on the 5 minute, I'm having a lot of success picking plays with it. Unfortunately since the trendlines adjust after every 5 minute candle, I am unable to back test this strategy. I may ask some of you to test it with me after I get more practice with it so we can see how this strategy works long term.
I was alerted Tesla calls at 10:35, and entered at 10:40 at $107 when I was at the bottom of the trendline range, the supertrend was green, and the macd was starting to creep up. I don't have a screenshot of the trendline at that point, but I took several later in the day. I got out at 12:35 at the first candle of the supertrend for $144. I was really happy with this play because it was pure indicator and market sentiment and no emotion. It was nice bagging some profit.
I entered SPY at 12:50 for $131 because I saw the supertrend start to go to red, I had a confirmation of the Macdbreakindicator, and the SPY was at a resistance level at the trendline. I missed my entry by $2 and it left without me, but I tried to force it anyway and got in late. I was pressured to hold for more to get what would have been 15%, and left at 1:02 for $114 when the tema and ema crossed as it started to go back up again. I had the right idea, but that was just too quick of a bounce to catch that time. I shouldn't have tried to force it after 1) because you shouldn't force a trade and 2) because the tema and ema were very close, and could cross and go up after, as they did.
I bought TSLA calls for $121 at 1:04 because it was at the bottom of a trendline, and the tema and ema had just crossed. I saw it didn't have resistance until $340 and was thinking I'd hold it until it hit there and then I'd sell. I failed to take into account the DMI being so close which shows sideways action. But, I got a lot of useful information watching TSLA to the end of the day. I held overnight on this one.
In this screenshot, we can see that there's a red candle on the support line of the small and medium trendlines (red and yellow dotted lines). I alerted Ben that I thought Tesla would go up then because it had a candle sitting on both trend lines and its been bouncing off before. Here is the screenshot a few minutes later.
Now, the trendlines are adjusted because they update with the candle action, but the trendlines caught the reverse before the supertrend did. In the second circle above, I took a screenshot as the green candle was still forming, and it ended up forming over both trendlines at the top. So I suspected a drop, and Tesla delivered. It dropped, then reversed back up to the line, then dropped again.
In the latest image, the candle overlapped the small and large resistance line, so I thought it would bounce back up, which it did.
And the day ended. I'm really excited to keep testing this out, and run into more conditions, like a hard reversal or a huge change in price. Sometimes the drops in price are a quick dollar, or other times its the start of a trend. I haven't figured out how to tell which from which, but I'll keep at it. Ended the day at $115, but feel better about it because I learned a lot from it. As always, feel free to contact me anytime I'm happy to help.