Tuesday, 25 March 2008

Trades 25/March/2008

Watchlist:
ACI,AGU,BCS,BG,CCJ,CSIQ,ELN,EXR,GG,GPS,GRMN,HK,IBN,INFY,
LFC,MON,OMTR,PSA,SLW,SNDA,STI,TCK,THQI,TRA,WSM

Difficult today to find tradeable opportunities. If the market is choppy and it keeps me out then that is ok, as there will be other days with better opportunities.

LFC (gap up)

After the gap up and a retracement, the price attempts to break out of OR on 5th candle but does not succeed. The 6th candle is a NR3 and NR7 and closes above the OR with the EMA reasonably close for support. This is our trigger candle.

Entry: 54.58 Stop: 54.15
Fib Ext: 55.90
1R=55.01 2R=55.44 3R=55.87

The price action looks good after entry as we head up to the $55 level and move our stop to breakeven. However a deep retracement stops us out at breakeven. A bit unfortunate as it bounced back subsequently and we could have booked a $1 gain. But that's the way it goes sometimes.

PSA (gap down)

After the gap down, the first candle is wide and weak as it passes thru yesterday's low. We then have a retracement up towards the prev day low. However both 4th and 5th candles reject that level. See the longer wicks on those candles and see how they also have the ema above providing extra resistance. The 5th is also a NR7 and a gravestone like doji close to ema and rejecting the $91 level. This is our trigger for a short. I don't trade these retracements very much but the price action here showing weak candles with ema as supporting factor combined with strong rejection of the $91.oo whole number level made it a trade worth the risk.

Entry: 90.65 Stop:91.15
Fib Ext: 87.14
1R= 90.15 2R=89.65 3R=89.15

The price moves in our favour and we take partial profits after a $1 gain. I closed the rest after candle 16 which closed strong above ema and followed candle 15 which had made a higher low.
Overall a good trade with rewards just above 2R.

7 comments:

Anonymous said...

Do you include commission as a breakeven point?

Victor

TraderAm said...

Victor.

No I don't include commission. The "breakeven" point is just the price that I opened the position.

Thanks.

Scott said...

Where did you find these 2 trading candidates? I came up with a GRMN short from http://money.cnn.com/data/premarket/nasdaq/ that reversed on me pretty quickly. Keep up the good work.

chartguy said...

just wondering how do you get your list of gapping up/down stocks?

chartguy said...

not sure if my comment made it through, I was wondering how you get your list of gapping stocks. Thanks

TraderAm said...

Scott.
These were from my gap scan from my broker IB.

I had GRMN on my list as well, but it didn't set up on the strategy I trade, so I left it alone.

Thanks.

TraderAm said...

chartguy

I use the gap scan from my broker IB.