SLV 6/5-6/9

Trading between STS (16.58) and STR (16.79).  5DMA acting as support.
Buy break above 16.79 with stop at 16.56.
1st R is at 16.93, then 17.16.
S is at 16.37, 16.28, then 16.09.

Stock Account 6/5-6/9

6/5  O - 200  H - 201  L - 199.10  C - 199.40
6/6  O - 202  H - 202  L - 201.38  C - 201.38

UNG 6/5 - 6/9

Gap from 7.02 to 7.11, then 7.16 to 7.44.
1st R is at 7.26, then 7.72.
S is at 6.76, 6.49, 6.29.then 5.76

6/6 - tried to fill gap between 6.82 and 6.87.  closed at 6.86 on low volume.

Practice 2

5/30/17 5:51 am
Sell 663 at .7414
1st S = .7377 (+37)
SL = .746 (-46)
PT = .7293 (+121)
TS 15

1 pip = .0663
1st S = +$2.45
PT = +$8.02

Practice 1

5/30/17 5:51 am
Buy 575 at 1.2872
1st Resistance (R) = 1.2945 (+73)
Stop Loss (SL) = 1.2792 (-53)
Price Target (PT) = 1.3190 (+318)
Once position is Positive, set Trailing Stop (TS) at 15

1 pip = .0575
1st R = +$4.19
PT = +$18.28

Trade 4: SLV Golden Cross

On the SLV daily chart, the 50 day Moving Average (thin green line) is setting up to cross above the 200 day Moving Average (thin blue line).  This signal is called a Golden Cross and is very bullish.  If you look at the shaded oval on the left, you will see the last Golden Cross which happened on 4/14/16.  From that point, price went from $15.34 all the way up to $19.71 on 8/2/16.  That is a 28.5% increase in less than 4 months.  The middle oval shows what happened the last time price reached this area.  Once the price hit $17.50, it quickly rose up into the high $19s.    SLV is currently trading in a small range, but a Golden Cross could break it out to the upside very quickly.

The options that I am following will be the April 21/17 calls.  Here are the current prices for each strike price:

Strike  Bid  Ask
17        .66  .68
17.50   .43  .45
18        .27  .29
18.50   .18  .19
19        .11  .12
19.50   .07  .08
20        .05  .06

The Spreads I am following would be:
 Spread         Cost
17/19            .57
17.5/19         .34
18/19            .16

Trade 4: USO trading in a range

The USO daily chart shows that the Oil Fund is trading in a range.  On the right of the chart you can see the price bouncing from just below the top yellow line down to just above the bottom.

The way to trade this when the price is rising off of the bottom would be to set a buy order at the top line of $11.65 in case the price breaks out of the range to the upside.  A sell order of half of your position would be set at $12.00 with a trailing stop of the other half at $11.90.  A stop loss order would be placed at $11.60 in case of a fake out.  If the price does not break above the range, you would place a sell order after the price begins to head back down with a stop loss at $11.65.  A sell order of half of your position would then be set at $11.07 with a trailing stop for the other half set at $11.10.

When the price is falling, you would set a short order at the bottom line of $11.00 in case of a breakout down, and a stop loss at $11.10 .  If the price does not break down, you would place a buy order after the price begins to head back up with a stop loss of $11.00.  A sell order of half of your position would then be placed at $11.60 and the trailing stop of the other half would be moved to $11.50.

Trading Lesson 2: Broadening Bottom, Right-Angled and Ascending

How to trade Broadening Bottom, Right-Angled and Ascending Formations

Identification:

*Short-term Bearish*

Shape:  Looks like a megaphone with the base horizontal

Trend Lines:  A horizontal (or nearly) bottom line (support) connects the bottom lows.  An up-sloping trend line (resistance) connects higher highs.

Once recognizing the formation:

When the price is going up:

Buy the Breakout Up:  Set buy order above Upper Trend (resistance) line.

If the Breakout Fails:

Go short at the High:  Sell short after the price starts heading down from the top of the trend line.

When the price is going down:

Sell the Breakout Down:  Set a sell order below the horizontal Bottom Trend (support) line.

If the Breakout Fails:

Go Long at the Low:  Buy after the price starts heading back up.

Partial Decline or Rise:  A partial decline from the top, or a partial rise from the bottom is a reliable breakout signal.  On a partial decline from the top, go long; on a partial rise, go short.

Trade 3: Descending Triangle in USO daily chart

The USO daily chart has a Descending Triangle formation forming.  The Oil Fund has found support at the 38.2% retracement level at $11.06.  There have also been a series of lower highs with last resistance at $11.65.  The trade is to set a buy order at $11.70, and a one cancels the other sell order at $11.00.  If the breakout is up, first resistance is at $12.00, while a breakout down would have first support at the 50% retracement level ($10.77).

Trading Lesson 1: Broadening Bottoms

How to trade Broadening Bottoms

Trading Tactics:
Price Target:
Compute the difference between the highest high and the lowest low in the formation.  Add or subtract this value from the most recent high or low.  The result is the target price for the upward and downward breakouts.

Once recognizing the Broadening Bottoms formation:

When the price is going up:

Buy the Breakout Up:
Set a buy order above the Upper Trend (resistance) line

If the Breakout fails:

Go Short at the High:
Sell short after the price starts heading down from the top of the trend line.

When the price is going down:

Sell the Breakout Down:
Set a sell order below the Lower Trend (support) line

If the Breakout Fails:

Go Long at the Low:
Buy after the stock makes it's turn at the lower trend line.



Partial Decline or Rise:
A partial decline from the top, or a partial rise from the bottom is a reliable breakout signal.  On a partial decline from the top, go long; on a partial rise, go short.

Trade 2: Ascending Triangle on SLV 15 minute

SLV is currently in an uptrend and an ascending triangle was spotted on the 15 minute chart.  After the bulls took a breather yesterday, I believe the price will continue to rise by the end of the week.

Once the price breaks above $16.95 we will test $17.15.  My strategy is to buy the Feb 17/17 $17 calls for $.13 and set my sell order at $.28.

Trade 1: Long SLV

In the chart above there are a couple of Bullish signals I am tracking.  Right now, SLV is trading in an Ascending Price Channel.  The strategy would be to buy at the bottom of the channel and sell at the top.  Also, a Golden Cross is setting up, where the Light Purple line (50 day Moving Average) is crossing above the Dark Purple line (200 day Moving Average).  My strategy is to buy the March 17/17 $17 calls for $.49.  I will set my sell order at $1.00.

Welcome to my Professional Trading Journey blog where I share trading ideas that I have developed in my attempt on my journey to become a professional trader.  Here I will post trades and track my progress.  Please feel free to share your own trade ideas or post comments/critiques of mine.