Wednesday, 19 March 2008

Trades 19/Mar/2008


KGC (gap down)

After gap down we have three bearish candles to start before the price retraces up towards the OR. However it can't get past this level on a closing basis. The 5th candle is red with a long wick and closes below the OR with ema above, you could make a case for this being the trigger. The 6th also bounces down from the OR and the ema and is a NR7, this was my trigger.

Entry: 22.90 Stop: 23.20
Fib Ext: 21.89
1R=22.60 2R=22.30 3R=22.00

The price moves down nicely, the next candle closes weak and adds to our confidence. We move our stop to breakeven once we get to 1R. The price retraces up but we stay in the trade and close at the end of day for a nice gain once we hit the Fib Ext.

TCK (gap down)

After the gap down, this stock has 3 very weak candles and passes thru the decade $40 as if it's not there. It then consolidates sideways with narrowing bars at it's lows for several candles. We have support from the ema above and either of the marked candles (both NR7) could be used as our trigger candle.

Entry: 38.80 Stop:39.05
Fib Ext:38.99 (so we are in beyond the Fib Ext level)
1R=38.55 2R=38.30 3R=38.05

We take partial profits after a $1 move and the rest is closed a couple of candles later when we close above the ema.

ADBE (gap up)

This chart is just for illustration purposes as I missed the trade. But after the gap up we have some strong candles as we break thru the OR. See how the 5th candle, although red bounces up from the OR high confirming it as support. Either of the marked candles could be used as trigger. I would have preferred the 7th candle as it is closer to the ema and closes strong.

WERN (gap down)

After gap down, we have some strength, but note how it can't get back beyond yesterday's lows on a closing basis. Then it's all downhill. The 3rd, 4th and 5th candles are all weak with longish wicks and they all close weak. The 5th breaks thru the OR and is our trigger. There is also a further trigger later as we retrace slightly. Notice though that we never close above the OR low and so there is no reason to exit the trade during this phase.

Entry: 17.46 Stop: 17.70
Fib Ext: 17.14
1R= 17.22 2R=16.98 3R= 16.74

We take partial profits at the Fib Ext and exit the rest at close of day.

I enjoyed the trades today, as there was no frantic market action at the start, so it was just a case of scrolling thru the charts, taking our time to find an entry that suits us and leaving it to run with stops in place.


OONR7 said...

traderam... so, you move your stop-loss to breakeven after a 1R gain. If so, how long have you been doing this and has it been a successful strategy?

TraderAm said...


Have been doing this in both the initial paper trading (6 months) and in Live trading (2 months). Successful ? Overall yes. Sometimes you do get the price move which comes back and stops you out before carrying on in the initial direction that you called. But that's just the way it goes sometimes.

How do you play it ?

OONR7 said...

I've noticed with my entries that after an initial move, price may pullback and beyond my initial entry before heading back down (or up) in the desired direction. Although it's nerve racking to see profits disappear. Lately I've been keeping with the trade and not moving my initial stop until I've partialed out of my position or the charts indicate a potential reversal. I use the 15-min chart for exits (no matter what timeframe I enter on). I typically look back at all my weekly trades and have noticed lately that sticking with the trade and not exiting until the chart tells me to has really paid off. However, when you're 'in the moement' it's hard to pass up the temptation of quick cash.