Thursday, 28 February 2008

Trades 28/Feb/2008


LEH (gap down)

Very weak open followed by a pullback into the OR. Note how the 2nd candle couldn't get back above previous day low. The 5th candle is weak NR7 which closes below the OR low. This is our trigger.

Entry: 55.22 Stop: 55.70
Fib Ext: 54.33
1R=54.74 2R=54.26 3R=53.78

Price fell nicely after entry and closed half at the Fib Ext. Closed rest on 12th candle as it closed above the ema.

CTRP (gap up)

Strong open with run up in the first five candles. So we are looking for a retracement to see if that will give us an entry. The bars 8 thru 10 are narrowing in consolidation at the ema. The 10th is a bullish NR7 candle with long tail and it closes strong at its high. Also note the $60 level which holds during this consolidation adding to our confidence in this trade. The 10th is our trigger for going long.

Entry: 60.34 Stop: 59.90
Fib Ext:61.06
1R=60.78 2R=61.22 3R=61.66

Took half profits at the Fib ext and left the rest to run with stop at breakeven. Closed rest on 2nd last candle of the day as it closed below the ema. Nice run, despite the market being weak.

STX (gap down)

After gap down, a bit choppy in first few candles. The 5th is a NR7 weak candle which closes below the OR and also closes weak. This is our trigger.

Entry: 22.61 Stop: 22.90
Fib Ext: 22.26
1R=22.32 2R=22.03 3R=21.74

Close 1/2 position at the Fib Ext and the rest was closed near to breakeven as the 15th candle closed above the ema.

In summary, some nice moves today and I probably missed a few trades as well.


OONR7 said...

nice trading. I've been removing stocks that haven't gapped up/or below the previous day's highs/lows but you're doing well with them. I've also been focusing on stocks who average daily volume for the last 30 days is 500,000 or more. Helps to keep the watchlist down.

TraderAm said...


Yep I tend to trade mostly on gappers which have gapped up/down past the previous day's range. However I do keep those gappers on my watchlist which have gapped within previous days range but are trading outside that range. If they re-enter that range then I remove them.

In hindsight, there were some other trades which I missed which were gappers outside prev day and which had good (maybe better) tradeable patterns : especially APPL,SFI,MF