Monday, 3 March 2008

Trades 03/Mar/2008


Due to work committments I only got time to set up my watchlist. So no trades were made. But I'll have a look at some charts in hindsight and post some comments later.
Always easier in hindsight, but looking at the watchlist, these were the ones which I think I probably would have traded.

SVU (gap up)

A nice pattern this one, but it is a higher risk. The first candle was bullish and took us away from the previous day high quite nicely. We then have a sideways consolidation with narrowing candles and also staying in upper third of the OR.
The 7th is a green hanging man type which bounces off the EMA and also closes strong. This is our trigger.

Entry: 27.95 Stop: 27.78
Fib Ext: 28.87
1R=28.12 2R=28.29 3R=28.46

It is a higher risk because we are still in the OR. But the next few candles would have added to our confidence since they were bullish and exceeded the OR. We would have taken partial profits at 2R and closed the rest on breakeven.

SPR (gap down)

After the gap down, we basically go sideways then we start trending down with the ema from candle 5 onwards. The 7th candle drops below the OR. The 8th is green but cannot close back up inside the OR. The 9th is NR7 which stays below the OR. Taking these last three candles into consideration, we are thinking bearish and short below the 9th candle.

This would have stopped us out for a loss when the 11th candle closed up into the OR.

LDK (gap down)

A bearish first bar after the gap down. We then have some choppy action at the OR low level before trading below it. Subsequently the price retraces back up to the OR. Then see how the candles 10 thru 12 cannot get back up into the OR. This has now become resistance. The 13th candle is a NR7 which is our first trigger. If we wanted further confirmation we could have waited for a couple of more candles which trend down with the EMA. Then the 15th candle is also a NR7 with EMA providing cover above. This is our second trigger option.

Entry: 26.22 Stop: 26.45
Fib Ext: 25.76
1R=25.99 2R=25.76 3R=25.53

We would have taken partial at Fib Ext. And closed the rest at end of the day.

Generally today would have been difficult and we would have had to stay focussed as there were not that many opportunities.


Anonymous said...

Do you look at the daily charts of your trading candidates, (to screen them) or do you just look at the 15 min chart on all the gappers? I notice you have a lot more NYSE stock candidates than Nasdaq. Do you prefer NYSE stocks?

TraderAm said...


I don't tend to look at daily charts to screen them. That is maybe something I need to think about. It's all a question of time. Do we have the time to bring up the daily chart on each of your watchlist and draw on the s/r levels etc and also have time to scan thru each stock looking for patterns? I know that some good traders do this (e.g Wall St Warrior), so not a bad thing.

NYSE cf Nasdaq : It not so much preference as just that they are coming up in my scans more. I remember in paper trading where I used to have lots more NASDAQ stocks on my watchlist. So it does change around.