ICEing on the Capitulation Cake
By Michelle B on Apr 3, 2007 in Michelle B's Posts, Stock Market
Michelle B submits:
LP commented concerning though he was aware ICE was moving down on strong volume, he did not have an edge in trading ICE as a capitulation play on Monday, April 2. ICE is noteworthy for several reasons. Firstly, it capitulated from a reverse head and shoulders bottom.
NOTE: Volume on below charts is not prominently displayed, please refer to your own charts to see the volume pattern.
Secondly, ICE used the bottom of a five-day price range as the springboard for the capitulation.
Thirdly, this range was echoed on the daily.
Tags: Capitulation, IntercontinentalExchange-Inc.-(ICE), rangebound-price, reverse-head-and-shoulders, Technical Analysis
13 Comment(s)
By Sylvain Thibault on Apr 3, 2007 | Reply
Nice post Michelle,
First time I see somebody else using Etrade Pro
By Michelle B on Apr 4, 2007 | Reply
Hi, Sylvain Thibault. What do you think of Etrade Pro? Years ago, it was just terrible; now it is adequate for active traders.
By Sylvain Thibault on Apr 4, 2007 | Reply
It works for me and I know it well. Other than orders and conditional orders, I mostly use LEVEL II with times and sales. Execution is good for market and limit order. I rarely use ECNs. I do not like the charts so much an it does not have any scanning features other than the limited “Top Ten List”(Gappers etc…). Also the .10/.05 cents minimum on stops is a problem sometimes.
I use Telechart Platinum for charts and real time scans.
I was looking at Cybertrader recently but Etrade came back with a lower commission so I stuck with them.
By Michelle B on Apr 4, 2007 | Reply
Thanks, Sylvain, for your feedback regarding etrade pro.
Years ago Cybertrader did not accept non-American residents as clients–has that changed now? (I think you are a non-American resident)
I had used Telechart years ago when it first presented its realtime charts (having had used it for end-of-day charting), and it was really wonky so I discontinued it. It is great value for money (providing it works well), so I will check it out again. Worden does provide great flexibility in formulating stock scans.
etrade Pro does have a streaming hi/lo ticker which shows both intra and 52 week highs/lows which I have learned to use to determine the pulse of the market and to catch various kinds of trades like capitulations. It fits my ‘focused-on-the-moment’ personality.
By Sylvain Thibault on Apr 4, 2007 | Reply
Cybertrader accepts non American citizen. As long as you are a resident of the US. They just want to see a copy of your VISA (H1, green card etc…)
Nice catch on the non-American status
You are an expat yourself right ?
TeleChart Platinum works well, the odd real time failure but every data source has it. It is great value.
I am concentrating on gappers for now, I will have to look into capitulations type setups and the highs/lows window.
By Michelle B on Apr 4, 2007 | Reply
Yes, Sylvain, I am an American living in France.
By President Fox on Apr 4, 2007 | Reply
Sylvian/Michelle, CyberTrader also accepts non-residents (at least, they did up to very recently - I used to be a client and am neither American nor based in the US).
Just wondering why active traders would choose etrade pro ahead of Cyber or IB - per trade commissions work out way cheaper (unless you’re trading very low priced stocks).
By Michelle B on Apr 4, 2007 | Reply
President Fox, thanks for your feedback. In my case, I have worked around the setbacks of Etrade which was the broker I chose many years ago before I became an active trader by incorporating them into my trading approach–it is unusual for me to trade more than 2 stocks daily and I do court low priced stocks from time to time. etradepro also has improved significantly in the last several years—add the inconvenience of changing brokers and I just continue to muse about changing to IB, but never do it!
By Sylvain Thibault on Apr 4, 2007 | Reply
Etrade Pro has lower commissions if you trade more than a 900 shares. They have published lower commissions for active traders and you can negotiate better deals. I pay less than $10 dollar per round trip regardless of the share number.
By President Fox on Apr 4, 2007 | Reply
I meant to write ‘per share commissions’ rather than ‘per trade’, but it looks like you both realised that…
By Richard on Apr 4, 2007 | Reply
I’m the same way, only I’ve been sticking with scottrade… I keep thinking about changing to IB or Cyber, but never actually do it.
By Michael on Apr 4, 2007 | Reply
You all need to stop BS’ing and come on over to CyberTrader!
By LP on Apr 4, 2007 | Reply
Michelle,
I guess I should make sure I check TraderMike.net everyday as you seem to be sneeky posting a lot of great stuff. Thanks for pointing out the reverse head and shoulders. I have a lot to add to the Capitulation checklist.
Thanks,
LP