Tuesday, 4 March 2008

Trades 04/Mar/2008


HMIN (gap down)

A weak first red WRB followed by a move below the OR. Candle 3 is a recovery and closes jst inside the OR, but has a long wick. Candle 4 is a red NR3 which opens and closes below the OR. Candle 5 is a inverted hammer type which also tries to gain the OR but fails and closes lower than the previous candle. This is our trigger.

Entry: 23.20 Stop:23.65
Fib Ext: 21.58
1R=22.75 2R=22.30 3R=21.85

After our entry the following candles show some promise as they form a narrowing consolidation at the lows. However later, it does not follow thru on the downside and we are stopped out for a loss.

FRE (gap down)

A first red candle is followed by a narrow red which is in the bottom third of the 1st candle. The 3rd candle is a weak candle which falls below the OR, it has opened at it's high and closed at it's low. This is our trigger.

Entry: 22.51 Stop: 22.85
Fib Ext: 21.66
1R=22.17 2R=21.83 3R=21.49

We take partial profits at Fib Ext and then close the rest as the 11th candle closes above the ema. You could argue a good case for closing the trade after the bullish 7th candle.

CIT (gap down)

A green first but we cannot regain yesterday's low. The next candles are red and testing the OR. The 4th is a bearish red which breaks thru the OR and also closes at its low. This is our trigger.

Entry: 20.35 Stop:20.68
Fib Ext: 19.73
1R= 20.02 2R=19.69 3R=19.36

We take partial profits at Fib Ext and move stop on our remaining position to 1R where are stopped out a few candles later.


Anonymous said...

Nice trades esp the financials...the place to be this am.

OONR7 said...

nice trades. Don't want to jinx things, but I have really enjoyed the market action recently. Hope it continues.

TraderAm said...

Thanks 00nr7.

Yes market action has been good. Other traders I know mostly trade off shorter timeframes (10min, 5min) and they have had a very good couple of weeks.

OONR7 said...

it's weird because some blogs I read they're having a really hard time and others are doing just fine. Just goes to show how the different types of systems react to this market.

TraderAm said...

I was thinking exactly the same thing. One blog was about a strategy had stopped working after 2 years and other blogs are saying that market conditions are too diffcult to trade.
Must admit that being new to trading it's always in the back of my mind that if I did it full time what would I do if it stopped working ? Or some people say the question is mute because a good strategy should work in all market conditions. Would be interesting to hear from experienced traders what their views are on this.

OONR7 said...

I have to say that the way I'm trading now is more in line with the way Trader X trades... and he's been doing it for a long time. I think there are times when a 'system' won't perform as well as other times, but staying the course with a good system does pay off.