Today, I picked General Motors Corporation (NYSE: GM), since it was the top stock mentioned on stocktwits.

I’ve marked the three entries (1 long followed by 2 shorts). All easy winners, which is nice. People are really liking their first taste of the everypush indicator/paintbar now that I’ve released it. This is just one more reason why that is. It’s available for Tradestation, Multicharts, and Ninjatrader from eotpro if you are interested.

The little dot indicator in the middle panel marks entries, but has stricter volume pressure requirements than I tend to use on stocks. That’s why it only marks the third trade entry. Maybe I’ll make a stock-trades version of the entry indicator soon. I’m too lazy to draw the arrows by hand… :-)

Anyway, the demonstration method used here for stocks is:

• 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. Not positive whether I care if it’s rising or falling yet…
• 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.

Stocks Mentioned In This Article
Stock	Links
GM	| |

Here’s today on my overview chart… I’ve drawn a box around the day session:

… that’s right. We haven’t gone anywhere. It’s been a lame, lame day.

Here are the trades that happened during the hour I hosted the eotpro live room today. All three of them, I told people that I’d personally bail for +1 to +2 ticks. I told them this way in advance of those ticks materializing:

So how did I know? The point I try to drive home nearly every day lately is: learn what a good trade looks like. If your trade doesn’t look like one of the good ones, get out. But, you don’t have to panic and jump out… if the trade just looks so-so, put in a profit target to grab a tick or two. Often, unless you have a horrible fill on your entry, the market will give it to you.

For what it’s worth, here is an example of a good-looking trade:

In the good trade, price pays you right away, and volume pressure heads your way. In this trade, when price starts heading sideways for a bit, you’ve got room to let it breathe. In the trades above where I chose to bail, price was going sideways from the get-go, and volume pressure usually was not too strong.

See the difference? I think it’s pretty apparent. And, on a fast chart, my point is that you get so many chances to trade every day, there is no reason whatsoever to stay in the trades that don’t look perfect.

So, today, aside from some nicer trades near the open, I’m getting rich $12.50 at a time.

Reader Jeff requested some early morning 89-tick EC charts with everypush on it. So, here are the last three mornings from 3AM to 9:30AM central time on EC futures. All of the first red and green bars are potential entries… The little dots at the bottom are the entries that look juiciest according to a few criteria. Those criteria were made for ES, so maybe something different would be more optimal for EC. Still, I think it looked pretty nice. You be the judge…

Here’s Friday:

… and Thursday (the hardest-looking day of the three):

… and Wednesday:

People are super excited about everypush, and I can certainly understand why. I was showing it off in the live room again today. Here’s a shot from this afternoon….

The arrows here aren’t added by hand… I made a secondary indicator that marks the entries that meet some strict criteria. I DO NOT take all of the trades where arrows show up, and I DO take some everypush trades where arrows don’t show. They are just there to highlight the better-looking ones.

Anyway…

It works on futures. It works on stocks. It works on freaking everything. And it’s available on Nov 1st for Tradestation, Multicharts, and Ninjatrader as part of my offering through eotpro.

[Edit: here's another shot... see? Some of the entries marked with arrows don't work. But a ton of them do!

]

[Edit: even more shots.... my screen just keeps looking so gorgeous I can't help but post them...

]

I coded a simple arrow indicator on ninja to capture the kinds of trades that I have been looking to take. It’s just the simple stuff I’ve been talking about in the eotpro live room, like:

• Candle body below the fast MA
• Volume pressure accellerating in the right direction
• First new push from everypush

… and that’s it! The indicator gives an audio alert, which is nice. Actually, people that know me know that I tend not to boil my entries down to arrows. That’s because I never just blindly take any entry, but rather examine local price action etc… and I hate to give people something that they will understand as “Richard thinks you should buy here,” because that’s not what it means at all. But, I did this one to test the audio alert feature that we’re building into Bill’s Chopometer Arrows.

Here it is on my 3-tick range bar chart at the moment… I thought it looked especially beautiful, so I decided to share:

BTW, everypush(tm) looks good even on daily stock charts….

Why did I choose Alcoa, Inc (NYSE: AA)? Because it was the first stock listed in my ninjatrader Dow-30 list. Yeah, I am lazy. But when your indicators rock, you don’t have to be picky about which chart you pull up.

I traded everypush today on a pretty fast 3-tick range bar, and even in the whippy market it was loads of fun. They saw first-hand in the eotpro live room that not every trade was a winner, but that the win rate was good. One guy even said he made back most of the money he had lost in the morning just by looking at my everypush charts over the live room connection! And there’s even a 1 or 2 second delay in the live room transmission! Not bad… can’t wait to see what they can do with it when it’s right on their screens.

Stocks Mentioned In This Article
Stock	Links
AA	| |

Most people who are interested know that my everypush indicators are coming to tradestation and multicharts next week. Well, people were clamoring for the Ninja release, sending me mail after mail… so I gave in and went ahead and coded it. Here it is, shown both filtered and unfiltered:

As with most of my ninja paintbars, you can either plot it as a paintbar, as a histogram, or both. So, in this screenshot, the upper, filtered version is powering both the paintbars and the histogram. The unfiltered instance in the bottom panel is just plotting the histogram. You can see how the filtering keeps you out of a couple spurious trades on this chart alone!

I do prefer the filtering for my trading. But, the unfiltered version is much more aggressive, and you may find better filters for it than the ones I used. That’s why I left the unfiltered option available: to give you the most flexibility possible.

Anyway, this paintbar/histogram looks pretty great on every chart I throw it at. I think it’s one of my best indicators to date! Available next week for all three platforms as part of my eotpro package.

Blog reader Jeff can’t get enough of Ultrashort Financials Proshares (AMEX: SKF), so I’ve picked it again at his request. Lower-than-average volume gave us fewer bars than I’d like, and our rule about not getting in while the cycle-EMA touches the candle body kept us out of the initial run up. Oh well…. But, the simple system did take two stabs short in the afternoon, for two wins. Not bad!

The ability to adjust the chart levels, or make judgment calls about getting in on the second bar of a run, would have helped us grab more of the profit today, but I don’t want to do anything too complicated in the simple demonstration posts. It’s consistently profitable, which is more than I can say for most traders. Most people don’t understand that you need to get profitable first, and then try to fine tune stuff. Be smarter than most people, and you’ll be fine!

There were no stock suggestions today, so I went with UltraShort Basic Materials ProShares (AMEX: SMN) because it was the most-discussed stock on stocktwits.

As with all recent stock posts, the demonstration method used here is:

• 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. Not positive whether I care if it’s rising or falling yet…
• Closes above the cycleMA for long, and below for short. Candle body must not be touching the cycleMA… candle wick can be touching the MA… that’s still ok.

I’m still solidifying how I want to do money management on these… but right now I put the stop below the entry candle, and then switch to trailing the stop below each candle as soon as doing so would lock in profit. Obviously you want to hold off on moving the stop if the price closes on the low of a candle, or you are just stepping in front of a bus. So there’s some subtlety there, which I’ll try to codify for you as much as I can as time goes on. Opposite for short trades.

Anyway, with that stop strategy only the first trade (marked 1) would be a loss. The other 6 trades all made money. Trades 2 and 3 would meld together (because you’d still be in trade 2 when trade 3 came around, and make a small amount of money. 4 and 5 make money. 6 is a really close call, but ends up making money just before trade 7 fires. And, obviously, trade 7 is a huge gain compared to all the other trades.

Seriously, people, you can’t tell me it’s ambiguous, now… you don’t even have to understand what a pullback is, anymore. Our eotpro stuff is really, really good.

People in the eotpro live room today know that my chart in the morning was a bit bland… basically stuck in a sideways channel. But, this pic shows that, with patience, eventually a good setup materializes. Right at the end of the day!

What a nice drop! Simply trail the stop above the high of each candle until you are stopped out for 17 points per contract.

Blog reader Jeff requested SKF today. So, here it is:

I’m calling this one five trades for four wins and one loss. If you use the previous plot cycle for stops, you’d have no losses, actually… but I’m generally thinking of a tighter money management scheme than that.

As always, I show the whole day, and I show every qualifying signal. No funnybusiness. Is this the best system there is? Heck no. But, it just takes a couple of my eotpro indicators and uses them together to trade in a way that’s consistently profitable.

The methodology I’m currently using to select the entries is unchanged from the past few days. I thought I might have to add some additional filters to the system to keep out bad edge cases, but so far the simple approach has worked just fine. Anyway, here it is, and it is 100% completely unambiguous so far.

• Volume chart chosen based on 30-day average volume.
• New push on the everypush paintbar (first red or green bar)
• Volume pressure on b/a-histogram is up for long, down for short. Not positive whether I care if it’s rising or falling yet…
• Closes above the cycleMA for long, and below for short. Candle body must not be touching the cycleMA… candle wick can be touching the MA… that’s still ok.

Look at the chart on the left. It’s an overview chart, covering the entire day. Now look at the chart on the right… it’s basically showing just the last leg down.

So, the right-hand chart is just a “zoomed-in” view of the last leg down. But, look at how the trend channels look really similar! We have a push down, and a chop up, and a push down. Also, in both cases, the lower trendline on the second push down is pretty parallel and close in price with the upper trendline on the first push down. Also, see how the overall look of the volume splitter histogram is the same for both charts. Wow! It manages to surprise me every time I see it.

So, the internals of the last leg down are mimicking the overall day’s action, just on a smaller scale. If only there were a way to make use of this in a predictive fashion…

Anyway, it’s been a while since I’ve posted an example of self-similarity in price action. In fact, the last time was July of 2007! But, if you are looking for it, you can find it all the time.

Here’s today on my 17711 share bar trading chart, with just EveryPush paintbars and my new auto-trendline prototype. Looks pretty clean, huh? I’ve drawn in arrows at the failures to traverse the channels. If you could get in at those arrows you’d make a fortune every single day. The question, of course, is how fast can you determine that a turnaround in price is really going to turn out to be a failure to traverse, rather than a mere hiccup? Well, you can wait for everypush confirmation… and today anyway, you’d jump right on the two down moves within a couple bars of the arrow. There are longer waits before hitting the up moves so depending on your sensibilities, you’d skip them.

Here’s my chart from today. Pretty nice looking, no?

Pretty cool how price often (but not always, I know) moves about 2 to 3 math lines at a time…. and the everypush paintbars help you catch…. wait for it… … every push. Especially in combination with a contextual chart and the volume splitter, I think it looks pretty good!

Actually, if you are curious, here’s the contextual chart I used… you could also just trade it if you had the guts to use huge stops:

I think it’s neat that I’ve been using basically the same chart on futures and on my stock demonstrations lately.

You all should feel free to suggest stocks.. I know I still owe Quentin a volume-splitter screenshot, but I’ve just been too busy to get it on my screens in the morning and leave it to collect the data. Anyway, I picked Apple Inc (Nasdaq: AAPL) today because it was the top stock mentioned today on stocktwits.

Same critera as the last few days for picking entries. You can see we ride the move down, then hop on again in the afternoon a bit late to get much more. But, at least it tried to hop on again…

Not bad!

Stocks Mentioned In This Article
Stock	Links
AAPL	| |