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Apr 1st, 2015
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  1. What does Twitter's chart tell you?
  2. [3/28/2015 1:32:43 PM] Casher: possible future events a drop to 49, then a bounce up to 52 for a drop then to 48 area. Then from that point on will depend on general market if is continues to 45 or goes for the prior highest high
  3. [3/28/2015 1:34:08 PM] Omar Sheikh: I'm looking at jan 2017 calls. Wish I had looked into this when it was $40 😄
  4. [3/28/2015 1:43:24 PM] Omar Sheikh: Maybe if I understand it I'll have a chance to buy on a dip
  5. [3/28/2015 2:16:46 PM] Casher: it is my thought that we could get a bit of a dip
  6. [3/28/2015 2:19:24 PM] Omar Sheikh: Do charts tell you long term movements or short term only
  7. [3/28/2015 7:32:41 PM] Casher: they don't tell you anything, they just give you potential moves, and any time frame can be used to formulate an idea, basically everythink is just an engagement tool
  8. [3/29/2015 4:28:31 PM] Omar Sheikh: Hmm I understand support resistance levels, head and shoulders, bands
  9. [3/29/2015 4:28:59 PM] Omar Sheikh: But I don't regularly use them. It seems to me a chart would tell you more precisely about potential short term movements
  10. [3/30/2015 1:59:33 PM] Casher: and if charts only tell you short term, what is going to tell you long term
  11. [3/30/2015 5:17:27 PM] Omar Sheikh: fundamentals
  12. [3/30/2015 10:32:26 PM] Casher: you will need to tell me how fundimentals are going to help you trade
  13. [3/31/2015 8:18:16 AM] Omar Sheikh: If looking long term I look at forward PE multiple and PEG ratio
  14. [3/31/2015 8:19:38 AM] Omar Sheikh: Take a look at INUV
  15. [3/31/2015 5:11:05 PM] Casher: ok, using your example what about pe and peg back in sep was telling you to hold as the stock dipped 40%
  16. [3/31/2015 5:11:56 PM] Omar Sheikh: right
  17. [3/31/2015 5:11:57 PM] Omar Sheikh: it doesn't
  18. [3/31/2015 5:12:15 PM] Casher: or telling you it is possible to drop 40%
  19. [3/31/2015 5:12:32 PM] Casher: but yet my chart was telling me I should be a buyer at 1.11
  20. [3/31/2015 5:13:18 PM] Omar Sheikh: yes
  21. [3/31/2015 5:13:25 PM] Omar Sheikh: let's take INUV as an example
  22. [3/31/2015 5:13:27 PM] Omar Sheikh: what does it say
  23. [3/31/2015 5:15:39 PM] Casher: it is looking tired, and extended, and also hitting a 100% extention move
  24. [3/31/2015 5:16:51 PM] Casher: I would not look at it from these levels as a big picture buy, but seeing if there was small trading opps, until we move back to at least 1.7 for a new buy
  25. [3/31/2015 5:17:39 PM] Casher: the action over the next few days or week will help find possible scalps, and see if the retrace it real
  26. [3/31/2015 5:17:47 PM] Omar Sheikh: i was thinking of jumping in at 1.40 and didn't
  27. [3/31/2015 5:17:57 PM] Omar Sheikh: it looks like it's hit it's peak
  28. [3/31/2015 5:18:03 PM] Omar Sheikh: it didn't break through
  29. [3/31/2015 5:19:08 PM] Casher: at 1.2 there is a nice wedge breakout, retest that was a nice buy point
  30. [3/31/2015 5:19:28 PM] Omar Sheikh: what is a wedge
  31. [3/31/2015 5:19:31 PM] Casher: got to step away for a minute will send a pic
  32. [3/31/2015 5:20:02 PM] Omar Sheikh: ok
  33. [3/31/2015 5:20:06 PM] Omar Sheikh: this is fascinating
  34. [3/31/2015 5:38:32 PM] Casher: loading my screen capture tool and editor
  35. [3/31/2015 5:40:31 PM] Casher: http://screencast.com/t/r5OxGO4ctsF6
  36. [3/31/2015 5:40:48 PM] Casher: green arrow is wedge lines
  37. [3/31/2015 5:41:58 PM] Casher: red arrow is reteat of break out
  38. [3/31/2015 5:42:09 PM] Casher: blue arrow is break out
  39. [3/31/2015 5:42:55 PM] Omar Sheikh: yup I got that
  40. [3/31/2015 5:44:04 PM] Casher: the last point on the bottom line of the wedge is right on the 62% retrace and that spot after the confirmation candle could be bought before the breakout, at the 1.11 prior mention
  41. [3/31/2015 5:45:09 PM] Casher: now the problem I have with this stock is after its major drop coming into 2008 it has not played along with this major market rise, and why would we look at a stock that in a bull market could not move for 7 years
  42. [3/31/2015 5:46:41 PM] Omar Sheikh: that's where the news articles come in :)
  43. [3/31/2015 5:46:46 PM] Omar Sheikh: they changed their business last year
  44. [3/31/2015 5:47:24 PM] Omar Sheikh: i guess my question is what you highlighted in your chart is one pattern
  45. [3/31/2015 5:47:30 PM] Omar Sheikh: there must be several
  46. [3/31/2015 5:47:40 PM] Omar Sheikh: how do you find the next opportunity?
  47. [3/31/2015 5:47:51 PM] Omar Sheikh: can you zoom in the last 2 months?
  48. [3/31/2015 5:48:47 PM] Casher: yes
  49. [3/31/2015 5:49:48 PM] Casher: the more I zoom in the more the chart look poorly filled in
  50. [3/31/2015 5:49:57 PM] Omar Sheikh: ok
  51. [3/31/2015 5:50:43 PM] Casher: now you wait for a flag or trend break or a new 62 or 78 % retracement
  52. [3/31/2015 5:52:22 PM] Omar Sheikh: i'm looking at the chart
  53. [3/31/2015 5:52:26 PM] Omar Sheikh: where do you get 62 or 78 from
  54. [3/31/2015 5:57:37 PM] Casher: the move from 1.05 to 2.12 = 1.07 in movement. 62% is .66 and 2.12 - .66 = 1.46 would be 62% retrace, look to buy there
  55. [3/31/2015 5:58:12 PM] Omar Sheikh: why 62%?
  56. [3/31/2015 5:58:27 PM] Casher: ok, the concept is either the golden ratio or the Fibonacci numbers
  57. [3/31/2015 5:58:38 PM] Omar Sheikh: ah
  58. [3/31/2015 5:58:42 PM] Omar Sheikh: that's what i'm missing
  59. [3/31/2015 6:00:35 PM] Casher: look up fib retracement and trading on google
  60. [3/31/2015 6:00:41 PM] Omar Sheikh: already reading
  61. [3/31/2015 6:01:25 PM] Omar Sheikh: what about 78%?
  62. [3/31/2015 6:01:27 PM] Casher: they use some numbers I don't like but you may find that out the hard way, and as in everything in trading nothing works all the time
  63. [3/31/2015 6:01:36 PM] Casher: some bases
  64. [3/31/2015 6:02:38 PM] Casher: the inverse of the difference between the fib numbers, or something like that. after you know how to use them and trust them no point knowing what crazy way they got the numbers
  65. [3/31/2015 6:06:27 PM] Omar Sheikh: awesome
  66. [3/31/2015 6:06:43 PM] Omar Sheikh: so question, why take the 62% bounce over the 78%
  67. [3/31/2015 6:07:05 PM] Omar Sheikh: is it theory ?
  68. [3/31/2015 6:07:58 PM] Casher: you look at both and if the risk to hold to the 78 is to great you take a shot, set a stop and if the 62 doesn't work be ready to load again at the 78
  69. [3/31/2015 6:08:47 PM] Casher: there maybe other things, that help you decide, other support or something, but normally you look hard at both areas
  70. [3/31/2015 6:09:12 PM] Omar Sheikh: can you explain stops to me
  71. [3/31/2015 6:09:55 PM] Omar Sheikh: i don't understand that statement unfortunately
  72. [3/31/2015 6:10:46 PM] Casher: stop is a term used to set the point on the chart you will limit your bleeding if not correct on your trade
  73. [3/31/2015 6:10:55 PM] Casher: all part of money management
  74. [3/31/2015 6:11:37 PM] Casher: and most platforms will let you place the order as a stop and will close trade for you in the event you are not at computer to do it
  75. [3/31/2015 6:12:13 PM | Removed 6:12:27 PM] Casher: This message has been removed.
  76. [3/31/2015 6:12:17 PM] Omar Sheikh: so say i buy a stock at 50 and put a stop at 40... it goes up to 60 and crashes... it'll auto sell it for me at 40?
  77. [3/31/2015 6:13:30 PM] Casher: yes
  78. [3/31/2015 6:14:09 PM] Casher: or you move the stop to break even or keep it $10 behind the market, so starts to protect porfits
  79. [3/31/2015 6:14:22 PM] Casher: profits*
  80. [3/31/2015 6:14:37 PM] Omar Sheikh: cool strategy
  81. [3/31/2015 6:15:04 PM] Omar Sheikh: can i place a stop after i've bought shares? or can it be set only when i buy
  82. [3/31/2015 6:15:46 PM] Casher: anytime, at same time or anytime after
  83. [3/31/2015 6:17:02 PM] Omar Sheikh: what about Slyce?
  84. [3/31/2015 6:17:56 PM] Omar Sheikh: it bounced at the 78% line
  85. [3/31/2015 6:18:11 PM] Casher: that symbol never came up for me
  86. [3/31/2015 6:18:25 PM] Omar Sheikh: https://www.google.com/finance?q=CVE%3ASLC
  87. [3/31/2015 6:20:31 PM] Casher: SLC
  88. [3/31/2015 6:20:42 PM] Omar Sheikh: yup
  89. [3/31/2015 6:20:53 PM] Casher: why didn't you say so
  90. [3/31/2015 6:20:55 PM] Casher: lol
  91. [3/31/2015 6:20:58 PM] Omar Sheikh: lol
  92. [3/31/2015 6:22:27 PM] Casher: yes it did
  93. [3/31/2015 6:22:55 PM] Casher: it also bounced at 62
  94. [3/31/2015 6:23:27 PM] Omar Sheikh: taking this as an example, is there a predictive point it bounces to before it tries 62%?
  95. [3/31/2015 6:23:37 PM] Omar Sheikh: i'm assuming hit 62 again and then go lower
  96. [3/31/2015 6:24:46 PM] Casher: yes you can flip it over and measure for a target
  97. [3/31/2015 6:25:07 PM] Omar Sheikh: so you suggest entering now until 62?
  98. [3/31/2015 6:25:41 PM] Casher: the 62 bounce went up 62% from the top before going down to the 78 then bounced up 62 again from top
  99. [3/31/2015 6:26:30 PM] Omar Sheikh: where are you looking
  100. [3/31/2015 6:26:35 PM] Casher: now does seem to have support
  101. [3/31/2015 6:26:54 PM] Casher: I was taking it from the bottom of the top of gap
  102. [3/31/2015 6:27:25 PM] Casher: now we have 62 from the real low numbers, personally I would say it could work but would not hang one below
  103. [3/31/2015 6:27:33 PM] Casher: .42
  104. [3/31/2015 6:28:01 PM] Omar Sheikh: you've lost me
  105. [3/31/2015 6:28:21 PM] Omar Sheikh: can we go back tot he 62 bounce went up 62% from the top before going down to the 78
  106. [3/31/2015 6:28:33 PM] Omar Sheikh: the top was 1.19
  107. [3/31/2015 6:28:33 PM] Casher: give minute will send pic, but going to be busy screen shot
  108. [3/31/2015 6:28:38 PM] Omar Sheikh: ok
  109. [3/31/2015 6:29:00 PM] Casher: the one you see I will not include
  110. [3/31/2015 6:29:58 PM] Omar Sheikh: the support level at 62 are you looking at mid Feb?
  111. [3/31/2015 6:30:11 PM] Omar Sheikh: then up to 70 by 3/4 Feb
  112. [3/31/2015 6:33:45 PM] Casher: http://screencast.com/t/Ube9k3MId
  113. [3/31/2015 6:34:21 PM] Casher: we maybe not looking at same chart
  114. [3/31/2015 6:35:41 PM] Omar Sheikh: you're looking at 2014 EOY
  115. [3/31/2015 6:37:36 PM] Casher: so low to high then after 62 drop then long to 62 bounce to drop to 78, for bounce to 62 for two nice long trades for the year
  116. [3/31/2015 6:38:49 PM] Omar Sheikh: 62 is the 50% level
  117. [3/31/2015 6:38:58 PM] Omar Sheikh: of the high
  118. [3/31/2015 6:39:27 PM] Casher: from major low?
  119. [3/31/2015 6:39:46 PM] Omar Sheikh: by low I'm assuming you mean 0.5
  120. [3/31/2015 6:39:55 PM] Omar Sheikh: then high at 1.2
  121. [3/31/2015 6:41:04 PM] Omar Sheikh: ok then 62% level is 0.78
  122. [3/31/2015 6:41:12 PM] Omar Sheikh: 78% level is 0.93
  123. [3/31/2015 6:42:01 PM] Omar Sheikh: "then long to 62 bounce to drop to 78, for bounce to 62 for two nice long trades for the year"
  124. [3/31/2015 6:42:04 PM] Omar Sheikh: i don't get that
  125. [3/31/2015 6:42:50 PM] Casher: sorry I put to much on the chart told you it was going to be busy
  126. [3/31/2015 6:43:07 PM] Casher: i will send one chart pert leg of trade
  127. [3/31/2015 6:43:11 PM] Omar Sheikh: ok
  128. [3/31/2015 6:44:48 PM] Casher: http://screencast.com/t/hZzszI1IDr
  129. [3/31/2015 6:45:12 PM] Casher: retace to .739 cent for first long
  130. [3/31/2015 6:46:28 PM] Casher: check
  131. [3/31/2015 6:46:30 PM] Casher: ?
  132. [3/31/2015 6:46:46 PM] Omar Sheikh: i see the 0.459 to 1.192
  133. [3/31/2015 6:46:59 PM] Casher: yes
  134. [3/31/2015 6:47:20 PM] Casher: i will not send next pick till you get the one you have
  135. [3/31/2015 6:47:29 PM] Casher: get as in understand
  136. [3/31/2015 6:48:35 PM] Omar Sheikh: what i get out of it is you have your low of 0.459, goes to a high of 1.192, and it acts as the high to generate your support and resistance levels based on your fibonacci numbers which are your coloured lines
  137. [3/31/2015 6:48:59 PM] Omar Sheikh: i guess the question is if you bought in at 0.459, how do you know when to sell :P
  138. [3/31/2015 6:49:17 PM] Casher: http://screencast.com/t/Jnz5hrLUqre8
  139. [3/31/2015 6:49:46 PM] Casher: try it again, revised
  140. [3/31/2015 6:50:22 PM] Casher: first two numbers are to measure move to fine retrace
  141. [3/31/2015 6:50:36 PM] Omar Sheikh: ok so it went to 1.192, fell to the 62% value of 74 so you take the trade
  142. [3/31/2015 6:50:39 PM] Omar Sheikh: and sell
  143. [3/31/2015 6:50:46 PM] Casher: long
  144. [3/31/2015 6:50:55 PM] Omar Sheikh: lost me
  145. [3/31/2015 6:50:57 PM] Casher: at 62 retrace
  146. [3/31/2015 6:51:07 PM] Omar Sheikh: so you don't sell at 62, you buy more
  147. [3/31/2015 6:51:21 PM] Omar Sheikh: because it fell to the 62% level
  148. [3/31/2015 6:51:22 PM] Casher: first buy
  149. [3/31/2015 6:51:30 PM] Omar Sheikh: ah
  150. [3/31/2015 6:51:38 PM] Casher: missed everything prior
  151. [3/31/2015 6:51:50 PM] Omar Sheikh: got it
  152. [3/31/2015 6:54:05 PM] Omar Sheikh: ok so i get your first two green arrows from your original share
  153. [3/31/2015 6:54:11 PM] Casher: http://screencast.com/t/Jnz5hrLUqre8
  154. [3/31/2015 6:54:36 PM] Omar Sheikh: that's the same one i got before
  155. [3/31/2015 6:54:58 PM] Omar Sheikh: what stock software do you use
  156. [3/31/2015 6:55:31 PM] Casher: http://screencast.com/t/h63WmuSYKiD
  157. [3/31/2015 6:55:46 PM] Casher: paste malfunction
  158. [3/31/2015 6:56:09 PM] Casher: this is tradingview
  159. [3/31/2015 6:56:16 PM] Omar Sheikh: i get it
  160. [3/31/2015 6:56:23 PM] Omar Sheikh: it went up to the 78% value so you sold
  161. [3/31/2015 6:58:22 PM] Casher: http://screencast.com/t/B6NMMIDww7X
  162. [3/31/2015 6:58:50 PM] Omar Sheikh: based on the 0.739 point off the first hop?
  163. [3/31/2015 7:00:30 PM] Casher: http://screencast.com/t/5Of9hhvE
  164. [3/31/2015 7:01:01 PM] Omar Sheikh: where is the 62% bounce in your last screenshot
  165. [3/31/2015 7:01:09 PM] Omar Sheikh: 62% of the top of 1.19?
  166. [3/31/2015 7:04:47 PM] Casher: one more hoping to put together
  167. [3/31/2015 7:04:54 PM] Casher: http://screencast.com/t/risLyoobqLWN
  168. [3/31/2015 7:07:59 PM] Omar Sheikh: got it
  169. [3/31/2015 7:08:10 PM] Omar Sheikh: so is there a "rule" that you only look one fibonacci ahead
  170. [3/31/2015 7:08:24 PM] Omar Sheikh: so now i should look at the 62%
  171. [3/31/2015 7:09:49 PM] Casher: measured from where?
  172. [3/31/2015 7:10:01 PM] Omar Sheikh: the current position
  173. [3/31/2015 7:10:36 PM] Casher: give me the fib points, and what direction you looking , because based on comment not sure you have it
  174. [3/31/2015 7:11:43 PM] Omar Sheikh: so today it fell to your original retract measure
  175. [3/31/2015 7:12:01 PM] Omar Sheikh: about 0.45
  176. [3/31/2015 7:12:07 PM] Omar Sheikh: and then bounced to 0.53
  177. [3/31/2015 7:12:37 PM] Omar Sheikh: so i would go long here
  178. [3/31/2015 7:13:10 PM] Omar Sheikh: until the 50% which is 0.61
  179. [3/31/2015 7:14:09 PM] Omar Sheikh: unless something special is expected when you reach your original position where you started the retrace?
  180. [3/31/2015 7:15:12 PM] Casher: the 100% retrace brings you back to the original support you used to start the entire string of calcs, so is a support worth trading
  181. [3/31/2015 7:15:30 PM] Omar Sheikh: and you would go long until 0.61
  182. [3/31/2015 7:15:31 PM] Omar Sheikh: and sell
  183. [3/31/2015 7:17:02 PM] Casher: interesting question, this is a crossroads to see if the down trend continues, or flips to a long trend to reviste the highs so the exit i would trail with a stop and see if it keeps going
  184. [3/31/2015 7:17:38 PM] Omar Sheikh: a stop at 0.40?
  185. [3/31/2015 7:18:41 PM] Casher: taking the 62 profit target is fine, but most cases i would be ready to take profit at them points but would also be looking to see if i can stay on, so profit taking is not as defined as entry
  186. [3/31/2015 7:19:02 PM] Omar Sheikh: right because it may test the highs again
  187. [3/31/2015 7:19:10 PM] Omar Sheikh: where would you set the stop
  188. [3/31/2015 7:19:30 PM] Casher: right, so do not like to give much back but also want to take advantage if i can
  189. [3/31/2015 7:19:51 PM] Omar Sheikh: at these levels the stop should be below the price i purchase to protect myself right
  190. [3/31/2015 7:20:37 PM] Casher: as we got closer to target would move it closer to trade price, but each product and expected move and daily range will help set a practical stop level on each product i trade
  191. [3/31/2015 7:21:01 PM] Casher: so no fixed value, more based on trade by trade, or more so product by product
  192. [3/31/2015 7:21:48 PM] Omar Sheikh: hmm
  193. [3/31/2015 7:22:03 PM] Omar Sheikh: changing the stop each day requires interpretation of the market that day
  194. [3/31/2015 7:22:06 PM] Omar Sheikh: i don't have that
  195. [3/31/2015 7:22:15 PM] Casher: as a trader look forward to 25 years of studing
  196. [3/31/2015 7:22:49 PM] Casher: not each day each product but one can adjust on a fixed formula
  197. [3/31/2015 7:23:12 PM] Omar Sheikh: i'd like to set the stop at 0.45 initially to see it it falls below that retrace level
  198. [3/31/2015 7:23:17 PM] Omar Sheikh: and if it goes up i can change it higher
  199. [3/31/2015 7:23:20 PM] Casher: sure
  200. [3/31/2015 7:23:38 PM] Omar Sheikh: 5000 shares?
  201. [3/31/2015 7:24:31 PM] Casher: what kind of question is that
  202. [3/31/2015 7:24:51 PM] Omar Sheikh: it's my first chart reading trade
  203. [3/31/2015 7:24:53 PM] Omar Sheikh: haha
  204. [3/31/2015 7:26:29 PM] Casher: seems a bit large, based on your cah amount. leave some ammo for other trade, I like trade small trade often
  205. [3/31/2015 7:27:06 PM] Omar Sheikh: ok 2000
  206. [3/31/2015 7:27:08 PM] Omar Sheikh: i'll put in $1000
  207. [3/31/2015 7:28:13 PM] Casher: if stoped out how much at risk
  208. [3/31/2015 7:28:33 PM] Omar Sheikh: $160
  209. [3/31/2015 7:29:06 PM] Casher: and how much cash you have in account again
  210. [3/31/2015 7:29:11 PM] Omar Sheikh: $3500
  211. [3/31/2015 7:29:36 PM] Casher: perfect 5% of cash at risk per trade
  212. [3/31/2015 7:29:57 PM] Omar Sheikh: ok
  213. [3/31/2015 7:30:14 PM] Omar Sheikh: dinner!
  214. [3/31/2015 7:30:16 PM] Omar Sheikh: thanks for the lesson
  215. [3/31/2015 7:30:17 PM] Omar Sheikh: you're awesome
  216. [3/31/2015 7:30:25 PM] Casher: your welcome
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