Daytrading General Motors Corporation (NYSE: GM)
Posted on November 10th, 2008
Written by Richard
Posted in: N/A (old archives)
As usual, I looked up the top stock on stocktwits. I can’t say I was surprised that General Motors Corporation (NYSE: GM) showed up as most-discussed. As often happens, GM was doing a lot more volume than its average, so I got more volume bars than I would generally want. Still, the demonstration system I use handled it quite well!
Here are the screen shots, with the whole day’s signals. I should note that these are 100% mechanical signals… I drew the arrows in to show you how it lined up to the indicator’s dots.
You might wonder why there wasn’t a short trade on the first red candle after the open. The answer is that End-of-Trend (the thick blue line indicator at the bottom of the chart) was all the way up. The mechanical system plays it safe and disallows trades when end-of-trend is up. You could choose to take the trade anyway, at your discretion. Right at the open, I’d say that’s not a bad bet to make.
Other than the first and last of the long trades (which many people would skip anyway since we were under Alla’s Average), I didn’t see any losses. A couple close-calls, maybe. But, overall, I think the simple stock system did a great job on GM.
And think! I didn’t cherry pick the stock, the time-frame, or the signals, and I showed you the whole day. And, I invite you to ask for your favorite stocks to be featured, and I’ll get to them one at a time.
If you need a refresher about what “rules” I use, here you go:
- Volume chart chosen based on 30-day average volume (I generally use the overview settings from this reference post on these stock charts).
- New push on the everypush paintbar (first red or green bar)
- Volume pressure on b/a-histogram is up for long, down for short.
- End of Trend is below 90
- Closes above the fast MA for long, and below for short. Candle body must not be touching the MA… candle wick can be touching the MA… that’s still ok.
(and if you haven’t been following my futures trading, this is essentially the same method I use on futures lately, with some alterations)
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© 2010 Richard Todd. I am not a financial advisor, and nothing on the site should be considered investment advice or actionable recommendations. I'm just an individual, saying what I think, and sharing my experiences.