Latest posts by Jaycee De Guzman (see all)
- $TECH Trade Dissection: How We Earned Up to 20% in the 1st Round and Up to 15% in the 2nd Round - December 7, 2018
- $NOW Trade Dissection: How We Lose 20% in Round 1 and Earned 50% in Round 2 - December 6, 2018
- PXP, STI, PLC, ABA, BEL: Know Their Top 10 Players’ Buying and Selling Averages - December 5, 2018
We started trading ISM Communications Corporation (ISM) last November 9, 2018. Since its intraday low of 5.81 on November 9, the highest intraday high it registered on the days that came after November 9 was 8.62.
I tell my clients that my usual risk tolerance percentage when I do short-term trading is 10 percent. It can go as high as 20 percent but my mean is at 10 percent.
If those who played the trade setup I posted for ISM last November 9, 2018 also had a 10 percent risk tolerance like me, their trailing stop loss was hit at 7.76. ISM traded below 7.76 last November 16. This means ISM is no longer part of our Short-term Trading Watchlist. On the screenshots below, you’ll see that I continued to provide daily updates even though the trailing stop loss for those who have a 10 percent risk tolerance was already hit. I did that for the benefit of those who have a risk tolerance that is higher than 10 percent.
Those who strictly followed their trailing stop loss and traded ISM when I posted this trade setup in our Short-term Trading Watchlist surely bagged a profit that is somewhere between 22 to 25 percent.
This is the reason why I am already revealing the trade setup that made me decide to add ISM in our Short-term Trading Watchlist for the EquiPicks subscribers.
Here’s what I posted in our Private Clients Forum for our clients last November 9, 2018. I’ll show you a screenshot with a timestamp.
Here’s what I initially posted last November 9, 2018.
I’ve noticed that many of you are interested to know more about the case of ISM. So, I’m opening this thread for ISM. I’ll provide a daily coverage on this stock so you’ll be updated without the need to request for an EOD update.
Yesterday’s ascent was supported with a bullish volume but the bulls retreated a bit from the intraday high. That revealed a bit of hesitation from yesterday’s bullish traders. That means everyone’s eavesdropping with each other’s next move.
I’ve used Fibonacci to forecast the next psychological resistance of ISM.
ISM’s resistance is at 8.06, which is in confluence with the 38.2% Fibonacci extension. It’s a precursor to 9.11, the resistance after 8.06.
The major support is at 3.97, which is in confluence with the 61.8% Fibonacci retracement. However, the price must break the support range between 4.45 and 4.96 to prove that the bearish sentiment is strong enough to break the support at 3.97.
I do not suggest reliance on the classical interpretation of Stochastic and RSI at this time.
Trade based on what you see on the Price-Volume Distribution and Top 10 Players chart of ISM.
As of November 8, 2018, at 03:30PM, the volume of ISM is 102.82% of the previous trading day. This stock’s latest volume is already above its 30-day volume average.
ISM skyrocketed. When a stock registers a volatility that’s higher than its normal volatility for the past 2 to 4 weeks, expect that the risk level will fly all the way to the HIGH or EXTREMELY HIGH level.
ISM has an EXTREMELY HIGH RISK level due to its risk percentage of 225.43%.
Foreign Fund Flow
ISM registered a Net Foreign Selling worth P4,773,540.00 as of November 08, 2018.
On a 30-day trading period, ISM is on a Net Foreign Selling worth PHP19,117,919.00.
Most active price point(s)/range(s): Focus on the price points with the biggest volume and the highest number of trades from 6.50 and below.
If and when the bullish sentiment becomes dominant in the first 15 to 30 minutes of trading today, refer to the price points with the biggest volume and the highest number of trades from 6.50 and above.
Top 10 Players EOD – November 8, 2018
Trading participants of ISM with a 100% Buying and Selling Activity as of Nov-08-2018 at 03:30PM:
9 out of 105 participants or 8.57% of all participants registered a 100% BUYING activity
6 out of 105 participants or 5.71% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 6.8991
Top 10 Players’ Selling Average: 6.9437
The psychological average price of the top 10 players as of Nov-08-2018 at 03:30PM is from 6.8991 to 6.9437.
Two things are possible.
1. Yesterday’s traders realized their gains already; OR
2. Many of them have been left on the top hoping that ISM will continue to soar today.
So consider these two possibilities if you’re planning to enter a new position or to top up on your current position on ISM today.
Top 10 Players WTD – November 5-8, 2018
Trading participants of ISM with a 100% Buying and Selling Activity from Nov-05-2018 to Nov-08-2018 at 03:30PM:
5 out of 112 participants or 4.46% of all participants registered a 100% BUYING activity
6 out of 112 participants or 5.36% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 5.7252
Top 10 Players’ Selling Average: 5.7132
The psychological average price of the top 10 players from Nov-05-2018 to Nov-08-2018 is from 5.7132 to 5.7252.
Those who traded ISM at the beginning of this month are still cool. They have a relaxing psychological average price. So even if the bulls retreated a little bit yesterday relative to yesterday’s intraday high, they’re still good.
Then, I posted daily updates on the prices that our clients needed to watch out for whether they were on a buying or selling side of the game. I also included charts instead of just numbers so that our clients can quickly visualize the numbers through a graphical representation.
Here are some screenshots. I just can’t include everything because there’s a lot. You can see how I answered the questions of some of our clients.
I know some of you are subscribers of other providers that rely on newsletters only. We’re more than just a newsletter-based service.
Some of you are subscribed to services that only focus on long-term investing. We offer more than that at a lower price. We have the Short-term Trading and the Long-term Investing watchlists for our customers. Plus, we also provide a Private Clients Forum where they can ask follow-up questions.
I heard from many of our customers, who were former subscribers of a service that focuses only on long-term investing and sends only two stock market updates via newsletter twice a month, that they had no way of asking questions to their former stock market mentor. It’s a totally different experience at Equilyst Analytics. Feel free to read our testimonials and you can see what I’m talking about.
My Latest Analysis
Since we’re done making money off ISM, I have a giveaway for you – my latest analysis of this stock.
ISM will continue to make attempts to re-test the support at 5.25 with this relatively low volume that it has been showing for the past few days.
If the volume spikes and the price holds above 6.30 per share, then, that’ll make the price move above the 10-day moving average. But I don’t think that’s enough to make MACD cross above the signal line. One of my buy signals is when the price moves above the 10-day moving average and when the MACD crosses above the signal line.
Top 5 Prices (Biggest Trades): 6, 6.1, 5.98, 6.2, 6.09
Top 5 Prices (Biggest Volume): 6, 5.98, 6.1, 6.2, 6.3
Why do I love using my Price-Volume Distribution chart?
- It helps us identify reversals, divergences, or false breakouts.
- It shows at a glance the prices that got the biggest volume with the highest number of trades.
- It helps us see if the majority of the volume is registered near the intraday high, intraday low, or median. The price bar at the top of the chart represents the intraday high. The price bar at the bottom represents the intraday low.
- It gives us a clue if cross trades happened at a certain price.
- This chart helps us decide where we should place our buying or selling price because we can see the prices that got the biggest volume with the highest number of trades at a glance.
- It helps us know the stock’s Volume Weighted Average Price (VWAP).
By the way, the significance of this chart and the ways on how to interpret it are well-documented in our Quick Start Guide.
Top 10 Players – EOD
Trading participants of ISM with a 100% Buying and Selling Activity as of Dec-05-2018 at 03:30PM:
16 out of 54 participants or 29.63% of all participants registered a 100% BUYING activity
4 out of 54 participants or 7.41% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 6.1575
Top 10 Players’ Selling Average: 6.1336
The psychological average price of the top 10 players as of Dec-05-2018 at 03:30PM is from 6.1336 to 6.1575.
Top 10 Players – WTD
Trading participants of ISM with a 100% Buying and Selling Activity from Dec-03-2018 to Dec-05-2018 at 03:30PM:
13 out of 78 participants or 16.67% of all participants registered a 100% BUYING activity
8 out of 78 participants or 10.26% of all participants registered a 100% SELLING activity
Top 10 Players’ Buying Average: 6.1763
Top 10 Players’ Selling Average: 6.1747
The psychological average price of the top 10 players from Dec-03-2018 to Dec-05-2018 is from 6.1747 to 6.1763.
Why do I always use the Top 10 Players chart together with the Price-Volume Distribution chart?
- It helps us see if the top 10 brokers of the stock are buying the dips, selling the rips, or moving sideways.
- It ranks all of the brokers who have traded the stock as of the time of checking/
- It tells us the buying and selling average of each of the top 10 players of the stock on a real-time basis.
- It tells us the psychological average price of the top 10 players of the stock.
- It tells us the buying average and selling average of each of the top 10 players.
- It tells us the cumulative buying average and cumulative selling average of the top 10 players.
Just like the Price-Volume Distribution chart, this Top 10 Players chart’s use is explained thoroughly in our Quick Start Guide.
If any of our customers would want to ask a question regarding anything they’ve read from the Quick Start Guide, they can post their questions in our Private Clients Forum. The instructions on how to use the Private Clients Forum are on the Quick Start Guide, too!
Keep in mind those nuggets of trade strategies I’ve mentioned above. Use a trailing stop loss when you trade. It does 3 Ps. It PRESERVES your capital, PROTECTS your gains, and PREVENTS unbearable losses. Modesty aside, I know there’s a lot of nuggets of gold you can pick from this dissection of our trade for ISM.
Subscribe to EquiPicks. I will help you trade and invest with discipline and with a data-driven basis.
Please comment below if you have questions. I would appreciate if you can comment about below anything you’ve learned from this post. Thank you.