Amec:possible short coming????

Looks like a 1-2-3 low on amex, breakout at 1053.

Sorry, IG index are not letting me save charts.

If somebody could post a chart, please.

The signal will come once 1054 is cleared...good spot mate...One to watch for tomorrow


dl.dropboxusercontent.com/u/4899609/amec6thfeb2-14.png

Question for chartsview?

When using IG charts, at what point is a breakout? Due to the spread.

I am now long on AMEC as it went past 1054 and triggered my buy. 1-2-3 low.

It reversed almost immediately at that point, did it not break out? and turned at resistance 1054?

I know IG charts are not the best, but I can't really afford £1000 a year updata or metastock. I don't trade enough yet. (trying to build up)

Any help form people who use IG charts would be much appreciated.

Hi LTV,

I don't think it's about which chart package you use here. It gapped up to 1055 during the opening auction so you'd think it's a breakout however, these types of trade (ie breakouts) are usually best only if they occur during "normal" trading ie not as part of an opening or closing auction.

What we want to see is a normal period of supply and demand having enough buying power to take out the resistance. During an opening auction a lot of the usual market participants don't actually participate so the opening U/T is not really representative of "normal" trading.

A book I read recently claimed that the open is dominated by amateurs whereas the close is dominated by pros (hence some people use closing prices as the primary marker of a day's trading). I'm not quite sure about this but it is in keeping with the idea that it's best not to place any trades in the first hour of play.

You highlighted yesterday a couple of 123-low breakouts (thank you), but IIRC both gapped over the resistance on open. That means there's an increased risk in taking them as they could always gap fill (below the resistance) which is technically a failure, albeit intraday, of the breakout.

IMHO these trades really need to be taken only when the breakout is well into the trading day.

Hope that helps.

PS AMEC could still breakout later today...

Jackozy,

Many thanks for your reply.

I have also read, amateurs open and professionals close the market. That’s possibly why remo stated on his chart, close above 1054.

Remo also said in the past, don’t buy within 30 mins of opening.

The slight problem, is that I set trades to open at certain levels at night, but I don’t think you can specify a time, when it will open? Therefore if it hits the target, at 08:08 or 16:28 it will take it. I don’t always have access during the day. Most of the time i do.

I think i'll have "working orders" in IG at higher/ lower levels and adjust them at 10:00 in the morning, thus avoiding the early morning breakouts.

This trading lark, takes up a lot of time!

Hi LTV
Best bet is to not place an order to open outside of market hours. The first thirty minutes should be avoided by all technical traders in my opinion. This stops you from entering at crazy prices and stops the breakout trades as jackozy rightly said about normal market hours trading.
Every thing i have said on chartsview is from personal experance
Thanks for the heads up thou That is what chartsview is all about.
cheers
remo

longterm_view wrote: Jackozy,

Many thanks for your reply.

I have also read, amateurs open and professionals close the market. That’s possibly why remo stated on his chart, close above 1054.

Remo also said in the past, don’t buy within 30 mins of opening.

The slight problem, is that I set trades to open at certain levels at night, but I don’t think you can specify a time, when it will open? Therefore if it hits the target, at 08:08 or 16:28 it will take it. I don’t always have access during the day. Most of the time i do.

I think i'll have "working orders" in IG at higher/ lower levels and adjust them at 10:00 in the morning, thus avoiding the early morning breakouts.

This trading lark, takes up a lot of time!