Wednesday, 26 March 2008

Trades 26/March/2008



Another tough day today with not much showing enough price action to trade. It's just a case of waiting and not forcing trades. If you can stay at breakeven or better or limit your trades in current market conditions then that is a positive sign.

CTB (gap down)

A very weak first bar is followed by a brief look past the OR before a small retracement. We then have narrowing candles 4,5 and 6. The 6th is a weak candle with longish wick and which breaks thru the OR and closes weak. This is our short trigger.

Entry: 15.17 Stop: 15.45
Fib Ext: 14.16
1R=14.89 2R=14.61 3R=14.33

After entry, the stock basically did nothing. Just went sideways. We closed our position (for a slight loss) a few candles later as it closed above the OR.

AZN (gap down)

After gap down we have sideways consolidation for 3 candles. The 4th is a hanging man type red candle which closes below the OR. This is our trigger for a short.

Entry: 37.30 Stop: 37.55
Fib Ext: 36.88
1R=37.05 2R=36.80 3R=36.55

The price moves down nicely and we take partial profits at the Fib Ext. The rest is closed after candle 16 which closes strong above the ema and it follows a base of support forming at the whole number $37.00 on previous candles. So overall a gain in region of 1.5R.


Scott said...

Take a look at GILD 15 min chart. The 3rd bar breaks the opening range low. The 4th bar breaks the 3rd bar low and I took the trade. I'm guessing you wouldn't take the trade because the 5 EMA was to far away and the 3rd bar was to long. Thanks, just trying to strengthen my game.....
P.S. I scanned over 72 different gaps, trying to get a play today.

TraderAm said...
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TraderAm said...
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TraderAm said...

Yes, today was difficult.

Regarding GILD > there are two main reasons why I wouldn't have taken the trade.

1)It hadn't gapped beyond the previous day's low, so it wasn't even on my list

2)The 3rd bar is weak and bounces off the ema, so the fact that it was a long bar would have been ok. But note what is below - we would be shorting into potential support at the decade $50 level. So it was likely to bounce near that level.

Thanks for your post

TraderAm said...


The main trade today from my list was MT, which unfortunately I missed since I was otherwise occupied.