ABX,AIG,AKAM,ATHR,AXA,AXP,AZN,BK,COF,C,CS,FNM,GG,HANS,
HCBK,HPT,JPM,KGC,LEH,MER,MS,NOK,SNDK,UBS,WB,WFC,ANR,AEM
After some tough days, finally a good day where we get some follow thru. A nice start to the month.
UBS (gap up)
After gap up the stock sells off but bounces back strongly in candles 3 and 4. We then have sideways consolidation along the OR with narrowing candles. The 9th candle is green and closes above the OR and bounces off the ema below. The 10th maintains the momentum and after testing the OR and ema it closes strong. This is our trigger for a long.
Entry: 32.35 Stop: 32.07
Fib Ext: 33.64
1R=32.63 2R=32.91 3R=33.19
We get a nice start after our entry as the stock trends up slowly. However it doesn't really follow thru stongly and we don't reach the Fib Ext. We close at end of day for a 2R gain which is good.
HANS (gap up)
After indecisive 1st candle we have some choppy action for a few candles. The 6th breaks the OR but then the 7th closes back below. The 8th is bullish hammer like and bounces off the ema. The 9th contines bullish behaviour. It is a NR7 and closes strong as it breaks the OR. This is our trigger for long entry.
Entry: 38.63 Stop: 38.30
Fib Ext: 39.89
1R= 38.96 2R=39.29 3R=39.62
Price moves nicely upwards and we take partial profits after 20th candle which is gravestone doji (2R) . The rest is left to run and is closed at end of day (3R).
CS (gap up)
After a small retracement we trend up past the OR before another shallow retracement which tests the OR as support (10th and 11th candles). The 11th is NR3 and NR7 and has ema for additional support. This is our trigger.
Entry: 54.05 Stop: 53.82
Fib Ext: 55.21
1R=54.28 2R=54.51 3R=54.74
Another good trending stock for today. We don't reach the Fib Ext but close at end of day for nice 3R gain.
AIG (gap up)
Stong first candle then a consolidating 2nd. The 3rd breaks the OR and the 4th is bullish which tests the OR as support and closes strong. Ideally I would have liked it closer to ema, but still a valid trigger for a long.
Entry: 45.91 Stop: 45.45
Fib Ext: 46.77
1R= 46.37 2R=46.83 3R=47.29
A promising bullish candle after our entry got us off to a good start. However it never followed thru and it came back to stop us out at breakeven.
As mentioned at start, a good start to the month. Hopefully we can continue in this vein.
9 comments:
TraderAM,
Nice selection. UBS and CS were solid congestion breakouts, while HANS and AIG were good traps.
Thanks Jim
Do you trade traps specifically ? It's something I have been keeping an eye on but haven't incorporated into my trading.
I do not trade traps only, but I do use the dailies to help with trade selection. I like gaps associated with the FIRST DAY in a NEW DIRECTION. This could be a BO of congestion, range contraction, or some type of trap.
traderam: I know where you get your candidates but can you explain how you widdle them down into your final watchlist? Also, what time do you run your IB scan and do you do it multiple times in the morning. Your list is oftentimes very similar to mine and I'm wondering if I'm doing more work than I need to :)
Thanks.
never mind I figured it out
Hello oonr7.
10 mins after open I look at the gap up and gap down scans. Make a note of all the stocks as I go thru both the lists which are in %gap order (biggest gaps first).
I aim come up with 30 to 40 stocks typically at this stage. If there is more then I don't add them to the list and keep the ones with highest volume.
After 15 mins (i.e. after 1st candle) I check the charts on each of these stocks and exclude those which are trading in yesterdays range and those which have a very wide range with long wick and/or tail. Typically this will reduce the list to around 20 - 25 or so.
After 30 mins (2 candles), I go thru the charts again and cut out any stocks which have moved into yesterdays range. And any other unusual choppy chart behaviour.
I then have a look at the IB sgap scanner again and see if any new stocks have appeared. At this stage I kind of eyeball the gap % and also how much the stock has moved in an attempt to select the stocks which have gapped and are still moving in the gap direction. I would note that this second look at the scan will maybe add 3 or 4 new stocks and sometimes if I already have more than 25 to watch then I don't bother doing this second look.
So in summary I go thru the gap list once and sometimes twice. The key point for me is that since I am trading 15min timeframe, then I have effectively 45 mins to view the gap lists and go thru the charts discarding stocks from my watchlist where relevant.
This is one reason why I have always found it difficult to trade the 5min and 10min charts as I get too rushed.
Is this of any help ?
Jason.
Figured what out ? :-)
I asked what a trap was I guess it did not post.
good info traderam. I only do a second scan when my watchlist is really light. Reason being is that I haven't figured out a way to eliminate duplicate stocks from the second scan. I'd love to be able to extract any new stocks that didn't appear on the first scan.
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