Trading Review for 3/17/2000
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Successful trading is about knowing where to look for opportunities, knowing when to seize the opportunity (or not), and managing their risk to maximize their profits. To that end, let's take a quick look at today's trading action relative to the top Trade Prospector signals:
Volatility - Volatility Compressions, Trading Range Patterns, and Multiday Patterns
ARBA Triggered brief 2-3 point trades at its 274.9 upper breakpoint KANA Remained in a tight trading range within its boundaries - no trade - but look for a breakout/breakdown on Monday MCLD Triggered long trades at its 87.6 upper breakpoint - first for about 1 point and then for up to 4 points VLNC Climed through its 29.6 upper breakpount for long trades worth up to 3 points IMNX Continued selling with other biotech stock and triggered short trades at its 174.9 lower breakpoint for up to 4 points NVDA Rallied through its 102.9 upper breakpoint for up to 3 points CELG Triggered long trades at its 123.4 upper breakpoint for up to 7 points MEDX Gave long entry at its 91 upper breakpoint for up to 5 points PDLI Another biotech on the downward slope - but it bottomed out prior to hitting its 170.6 lower breakpoint - watch for entries on Monday AKAM Triggered short trades at its 220 lower breakpoint for fractional results - look for posible continuation on Monday if the overall market is lacking
Momentum - Breakthrough Momentum and Momentum Intersections
AXP First rallied on its continuaing momentum but then failed and sold back through its 142.8 failure boundary for about 1 point PWAV Sold through its 140.1 continuation boundary for up to 3 points PMCS Continued its upward momentum through its 208.2 continuation boundary for up to 2 points- relatively tight trading range for this stock, look for potential large movement on Monday TIBX Continued its downward momentum through its 110.8 continuation bondary forup to 5 points and then found a bottom and reversed - it triggered long trades when it rallied through its 115.8 failure boundary for up to 5 points SCMR Rallied through its 144.3 continuation boundary for up to 2 points AGIL Tried to continue its upward momentum through its 83 upper boundary for about 1 point before it lost its momentum and traded back to close short of its 75.3 failure boundary - watch for possible continued selling through 75.3 on Monday
Trading Channel - Channel Breach, Near Trading Channel, and Near/Narrow Channel
MSTR Triggered shorts at its 226.5 lower breakpoint for up to 7 points RBAK Rallied through its 332.8 upper breakpoint for up to 17 points EBAY Was stuck within its BP boundaries - look for a possible breakout/breakdown on Monday NVDA Rallied through its 102.9 upper breakpoint for up to 3 points SILI Remained within its boundaries - look for a possible breakout/breakdown on Monday NSOL Remained within its boundaries - look for a possible breakout/breakdown on Monday ADAP First triggered shorts at its 156.4 lower channel boundary for up to 5 points and then triggered longs at its 164 upper breakpoint boundary for up to 10 points FDRY Triggered 3 point short trades at its 169.5 lower channel boundary RATL Keyed a long trade at its 84.2 upper breakpoint bounday for up to 4 points
Envelope - Breakout Patterns and Envelope Patterns
STT Signaled a long continuation trade at its 86.3 boundary for ip to 2 points KSS Lost steam and reversed back through its 90.6 failure boundary for up to 1 point CMB Continued its upward movement through its 90.6 continuation boundary for ip to 1 point BBY Gapped open beyond the 75 continuation boundary - no trade GM Traded within its boundaries - no trade NKE Tried to rally but didn't make its 37.5 buy entry, but did fall through its 33.4 false breakout/failure boundary triggering fractional shorts MTP Triggered fractional long trades at its 58.5 buy entry price HD Triggered long trades at its 62.4 buy entry price for up to 2 points
Knowing where to expect, and capitalizing on, reversals is a key profit making tool in the daytrader's arsenal.
Whipsaws can happen in choppy markets and traders should always step away from the trade or give themselves more distance from the original entry boundary when a reversal occurs (such as adding one point to the reversal side of the trade entry boundary) to reduce the effect. Losses are a fact of life, but they can be easily kept to a minimum while maximizing your profits with proper stop management.
Recognizing that a mere one point per day profit when trading 500 shares (or 5 option contracts) is $120,000 per year, you begin to understand the potential for profit in applying Trade Prospector's information.
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Copyright 2000, by Third Millennium Trading. All rights reserved. This information is proprietary and reserved for the personal use of Trade Prospector users and registrants. No other use is permitted without the express authorization of Third Millennium Trading.
Disclaimer: Third Millennium Trading does not recommend the purchase or short sale of any stocks. Trading should be based on your own understanding of market conditions, price patterns and risk. The information presented here is designed to contribute to your understanding. Controlling risk through the use of protective stops is critical (more).