Thursday, 21 February 2008

Trades 21/Feb/2008

OK, Lets look at some trades and charts.

EME (gap up)

After the gap, we move up in the first two green candles. Price then retraces back to the OR high and staying above the EMA. See how we have narrowing bars and see the lower wicks which bounce up from the OR high. So at this point we are looking for a candle to enter from. The 7th and 8th candles bounce off the ema. The 8th candle is dragonfylish green and closes above the OR. This is our trigger for long. See how next candle is green and closes higher, increasing confidence in our trade.

Entry: 25.12 Stop: 24.90
Fib Ext: 26.15
1R=25.34 2R=25.56 3R=25.78

We reach the 1R on 10th candle, and moved stop to breakeven, which is where we were stopped out.

BPFH (gap down)

The first candle is green, after which we basically move sideways. There is a quick "look" below the OR low on the 2nd and 3rd candles which make it less of an ideal pattern. However the 7th candle is bearish , red , crossing the OR low and also closing very near its low. This is trigger for short.

Entry: 16:47 Stop:16.80
Fib Ext: 15.13
1R=16.14 2R=15.81 3R=15.48

I took partial profits at 3R (which was also a $1 gain), then closed rest on the Fib Ext level. Nice !!!!
Easy to look at the chart now and see the classic staircase type pattern. If only it was that easy when trading Live....the period at $16.00 was the time when we were wondering if it was going to bounce or fail.

PSYS (gap down)

Not a clean looking price action on this chart, but the signs are there if we look closely.

The first two candles are indecisve. The 3rd and 4th candles are effectively opposites and taken together still indicate indecision. The 5th is NR3 which closes just below the OR. To make this a trigger is valid but a higher risk, since it did hold the whole number and we have the tails on the 3rd and 4th bars. So lets see what happens next. We move below the OR, then comes the 7th bar. This is bullish and retraces back up to the OR. See how it enters the OR but then retreats so that it still closes below it. The next candle (8th) is NR7 which stays below the OR and closes below the EMA. This is our trigger.

Entry: 28.64 Stop: 29.02
Fib Ext: 27.90
1R= 28.26 2R=27.88 3R=27.50

The price moved down nicely with the market. Took partial at Fib Ext and moved stop to 1R. Then closed the rest at end of day.

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