Tuesday, 19 February 2008

Trades 19/Feb/2008

Watchlist:
ABB,ABX,ACAS,AIG,AUY,BBBY,BHP,BTU,CS,FCX,GNK,HOC,IMCL,KGC,MHS,MRO,
ONXX,OXY,PBR,RIO,SHPGY,SIGM,SPWR,SWC,VLO,WDC,X,YHOO

BTU (gap up)


First candle was bullish and closed right at its high, so promising. We then have a minor move up outside the OR followed by a shallow drift back alongside the oR. The 8th bar is inverted dragonflyish type but green and closes right on the OR high. This is our trigger. The 9th candle is green and stays above the OR which adds confidence to our trade.

Entry 59.07 Stop 58.75
Fib Ext: 60.76
1R=59.39 2R=59.71 3R=60.03

We reach the 1R point and I moved my stop to breakeven. This is where I was stopped out for a scratch trade.

KGC (gap up)

First candle is red, and we move down to bounce off prev days high. Then we trend up to pass the OR high. There is no pattern candle, so I wait. The 8th candle is bullish closing at its high, it bounces off the Ema and stays above the OR. This is our trigger.

Entry: 23.05 Stop: 22.80
Fib Ext: 23.31
1R=23.30 2R=23.55 3R=23.80

Just didn't follow thru at all. I moved my stop to just below the OR high, where I was stopped out for a loss near end of the day.

VLO (gap up)


First candle is strong green hammer-like. We then move up outside the OR and begin consolidating sideways with NR bars. The 7th bar is green NR7 and is our trigger.

Entry: 60.78 Stop:60.42
Fib Ext: 61.67
1R=61.14

1R was reached on 7:15pm candle (UK time) and the stop moved to breakeven.
Subsequently the price fell and I was stopped out at breakeven.


SIGM (gap down)


First was red hammer-like candle. Then we trend down to the OR low. No setup yet. We then retrace back into the OR Range with green candles. Note that although these are green, they do have longish wicks, indicating some bearishness. We then trend down with ema confirming the "bearishness" of the green candles. The 10th candle is weak closing at its lows and also at the OR low. This is our trigger candle.
Note how the next candle closes below the OR and is red, thus adding to our confidence in the trade.

Entry: 41.71 Stop:42.08
Fib Ext: 40.37
1R=41.34, 2R=40.97, 3R=40.60

Moved stop to breakeven once 1R had been achieved.
I took partial profits at 40.71 ($1 run) and moved stop to 1R on remainder, where I was then stopped out over the next few candles.

It's probably worth mentioning that today was tough. And if the SIGM trade had not been taken then we would not have had a profit day.

8 comments:

Closet Daytrader said...

Interesting approach. I would have given up on your BTU and KGC trade when they crossed the OH.

Nice trades! Nice Blog!

Closet Daytrader said...

By the way, thanks for your wishes that led to our win over Inter tonight. :-)

bl said...

Looks like the coals momo'd up pretty quick at the open along with commodities. Do you scroll your stocks one by one once you have the WL or are the WL stocks on one page with small charts, say 6 charts per page, 3 pages=18 stocks?

TraderIAm said...

closet dt.

Thanks.
Do you mean you would have closed when they crossed the OR high from above ?

TraderIAm said...

bl

I use Quotetracker for my charts. And have 9 charts on the one screen. That gives me enough time space to "see" the patterns.

The 9 charts chop and change a bit as the day progresses. In other words I change which stocks are part of this nine depending on their price action...i.e. the best looking ones are on this page.

For the rest of my WL, I scroll thru one by one every 15 mins.

Hope this helps.

P.S > Do you use Sector watching in your trading ?

OONR7 said...

I enjoy how you use the term 'our' in your trade analysis. Where's 'my' profit :)

TraderIAm said...

oonr7.

:-)

I should be asking for some of your profit, since you had a good day on your blog. Nice trades by the way.

bl said...

Thanks, it helps. As for Sector trades, I'm in a "conflict" between gaps vs sector trades(beta or in play: coals solar ferts financials brokers shippers metals). I have 4-9 on a page, all 1 or 5 or 15 or 30 min charts. Pretty interesting 1 min charts at the open , pivots, 2:22 pm with 13, 50 ema. Should be interesting with the solars this am. Wish I had some of "our" profit to give you....