ICEing on the Capitulation Cake
Posted on April 03rd, 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.
This post has 13 comments
April 3rd, 2007
Nice post Michelle,
First time I see somebody else using Etrade Pro
April 4th, 2007
Hi, Sylvain Thibault. What do you think of Etrade Pro? Years ago, it was just terrible; now it is adequate for active traders.
April 4th, 2007
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.
April 4th, 2007
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.
April 4th, 2007
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.
April 4th, 2007
Yes, Sylvain, I am an American living in France.
April 4th, 2007
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).
April 4th, 2007
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!
April 4th, 2007
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.
April 4th, 2007
I meant to write ‘per share commissions’ rather than ‘per trade’, but it looks like you both realised that…
April 4th, 2007
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.
April 4th, 2007
You all need to stop BS’ing and come on over to CyberTrader!
April 4th, 2007
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