ABB,AUO,BBY,CBEY,ENDP,ESRX,FNM,FRE,FRO,GAS,GILD,HBC,IMCL,LLY,LTM,LYG,ME,MT,NLC, QDEL,ROP,SBAC.SHPGY,UBS,UNFI
FRE (gap down)
First candle was red bearish, then we went sideways at the OR low level for next several candles. The 7th candle bounced off EMA and crossed the OR low. The 8th candle was more bearish with longer wick and stayed below the OR. This is our trigger for short entry.
Entry: 25.51 Stop: 25.85
Fib Ext: 24.31
1R=25.17 2R=24.83 3R=24.49
We were looking good for a while and I moved stop to BreakEven once we reached 1R. Then it came back up with market and thus was a scratch trade.
LTM (gap down)
Red bearish candle. Then we have a red inverted hammer which is right at bottom on the 1st bar. This is our trigger for a 2 bar break. Unfortunately the stop is quite wide on this one, so we can't buy too many shares. The 3rd bar drops below the OR adding to our confidence.
Entry: 35.02 Stop: 36.37
Fib Ext: 32.39
1R=33.67 2R=32.32 3R=30.97
Price falls nicely and took partial at the Fib Ext. Closed rest of position on th 20th bar as it closed above the EMA.
FNM (gap down)
First candle was red bearish, then we went sideways for next several candles. We then hit a downtrend with NR bars with the EMA as cover above. The 11th candle moves below the OR low. The 12th candle was more bearish with longer wick and stayed below the OR. This is our trigger for short entry.
Entry: 27.33 Stop: 27.58
Fib Ext: 26.37
1R=27.08 2R=26.83 3R=26.58
The price didn't follow thru and came back to stop us out for a loss.
Overall a good day. But it is worth noting that our win rate was 33% (1 out of 3). Just goes to show how important the one winner is as long as we stay in the trade and get most out of it.
2 comments:
Hello...
I know a win is a win, but what stocks do you seem better to trade , Nasdaq or NYSE ? Great blog man...
Just added it to my favorites.
Quentin
Thanks Quentin.
To be honest I haven't done any past analysis on which stocks performed better using this approach.
In the past I have found NYSE stocks tended to be more difficult to trade generally, maybe due the "specialist" and sometimes the spread. In more recent times however, it seems to me that they tend to trend better.
But the current situation is that I don't differentiate between the two when I trade.
One comment I would make is that if the stock has a wide spread (e.g. > 8c), then I don't tend to trade it. But that applies equally to NYSE and to NASDAQ.
Hope this helps.
What do you trade ?
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