DOD.R trade ideas
Trading SET:DOD in its first IPO day with a M15 graph.In this educational idea, I bring up a case study of a Thai stock SET:DOD in its first trading day 20180620 with a graph of 15-minute time frame. With the custom indicator "Forex Insight Pro 7.0", many tool options such as local max/min, sma2 and sma3 crossing, sma ribbon, cc59 counting, gap finding, rsi warning provided useful information that could help in profitable trading. Starting from the left, the second bar at 20180620 10:00 showed a price rejection from the down side. The script mark a "Min" below that bar. Three bars later at 20180620 10:45 and four bars after that at 20180620 11:45, two "Max" bars were printed. If you drew a trend line between these two bars, a supply line was created. At 20180620 14:15, the market broke above this supply line giving a buy entry. This bar also close higher than the sma5 red line and higher than the close of four bars earlier. So the cc59 counting printed "+1" above this bar. The cc59 counting printed consecutive positive numbers as the price clibed upward along the sma5 red line until the ninth or "+9" was printed. Then a cc59 support light blue line was drawn at the lowest price among those from +1 to +9 bars. This was the profit taking point for those traders who follow "trading the nineth" strategy.
At the next bar of 20180620 16:30 (last bar of the first trading day), the "Gap" mark was printed. At the next day's first bar, the price came down to close yesterday's gap. At 20180621 10:00 the marks "SMA2<3" was printed suggesting that the price uptrend had been exhausted. This confirmed the exit decision of those who "traded the nineth". Also, the mark "Min" was printed below this price bar. Drawing a trend line between the first "Min" mark from the left of the screen to this second "Min" bar gave a demand line. At 20180621 11:00, the price fully closed below this demand line suggesting that the uptrend had been exhausted and some traders could take the profit here. Notice that at this bar the mark "SMA2<3" also printed again. Three bars later at 20180621 11:45, the price closed below the red sma5 line suggesting another place to take the profits. At 20180621 14:15, the mark "RSI<70" was printed to tell that the relative strength index rsi14 moved downward from overbought region to below 70% level suggesting that the uptrend was exhausted. Notice that during this uptrend, the sma ribbon of gray lines above and below the red sma5 line was expanding. It started contracting again after the cc59's "+9" mark was printed.
During the next 4 bars, the market makers pumped up the price to trigger those stop-buy orders. They then unload their positions heavily to end the first price rally of this newly listed stock. By the time this happened, "the nineth traders" who had taken their profits since the "+9" mark was printed were gone to find new opportunities for their hard-earned money.
The Forex Insight Pro 7.0 for TradingView can be used to help in trading of both stocks and forex since printing out technical events or "stories" on the graph reminds the traders of things worth considerations. TradingView members can search for this script and request for a 7-day trial to use this script by dropping a comment in the "Forex Insight Pro 7.0" script page.
