ACI,AGU,APOL,AZN,AZZ,BCSI,BHP,CF,CMP,CROX,ESI,KSU,LDK,MEE,
NVDA,POT,TRA,TTM,UBS,ZMH
Didn't have much to watch initially, not much was happening so I was tempted to leave it for today. Decided to give it another hour or so and I'm glad that I did.
BHP (gap up)
The 1st candle is bullish. A quick attempt past the OR is rejected then we retrace down to the ema where support is found. The 5th candle is bullish and closes just below the OR. The 6th is also bullish and breaks thru the OR with ema as support and it also closes strong. This is our trigger.
Entry: 72.49 Stop: 71.90
Fib Ext: 73.47
1R=73.08 2R=73.67 3R=74.26
After entry we trend up nicely with 3 strong candles. We take partial profits at the Fib Ext (around a $1 gain) and leave rest to run. Closed the rest after the 17th candle closed weak below the ema and fell thru the whole number at $74.00. Overall a good gain.
BCSI (gap down)
The first candle is strong, but this is negated by the next two which fall to the OR. The 3rd breaks thru the OR and closes weak. This was our first possible trigger entry. The width of the bar and also ema distance made me hesitate on this so I left it. Then later we come back and test the OR from below. The 7th candle is ideal entry trigger. It is bearish and rejects the OR and has ema close by. It also closes weak.
Entry: 20.52 Stop: 20.80
Fib Ext: 19.77
1R=20.24 2R=19.96 3R=19.68
The candle after entry falls strongly adding to our confidence in this trade. After that it is all downhill as we keep falling. Always be mindful of decade numbers, so I was watching the $20 level closely. See how the 11th candle fails to hold the decade $20. We take partial profits at the Fib Ext and close the rest after the 18th candle when it closed above the ema. Nice move and good rewards.
These were the only two trades I made. But a couple of charts below show trades I was thinking about but didn't execute.
AZZ (gap down)
A weak first candle. Then the 2nd is narrow candle right at bottom of the first and testing the whole number $31.00. A two bar breakout short was a possibility, but I decided against it because I haven't really traded these set ups much and they have been a bit inconsistent. Also the stop would have been quite wide on this trade. Having said that, it did fall nicely and would have been a decent gainer.
ACI (gap up)
A strong 1st bar then we have sideways consolidation with narrowing bars in the upper third of the OR. The 6th is NR7 , NR3 and the ema is close by. A nice pattern, but I was concentrating on BHP at the time and when I came back to ACI it had moved up quite quickly, so I didn't chase it. Again it would have been a good gainer. Not sure though the 12th candle, as to whether this was just a bad print or whether it would have stopped us out.
7 comments:
Good trades..............
always enjoy the detailed info.
Thanks anon
Yes, I agree. An excellent site with valuable trading analysis!
Ques:
(1) Why did you choose BHP? Volume was well below 50d average. Did you trade because it was a big gapper and had such a nice setup, while ignoring overall volume flow?
(2) How are you able to work full time and take so many open positions? Do you place your trades in the morning and walk away by leaving open market orders? With me, it seems like I am a slave to monitoring 15 min charts like a hawk!
(3)You are such a consistent winner with daily multiple R's, what will be the deciding factors before you begin full time trading?
(4) What motivated your decision to master Trader X type style of trading? Did you attempt other methods?
Thank you for your time and input. I look forward to being a regular reader. Ralph.
ralph
1)BHP appeared on my gap scan. It's volume on the first 15min candle was a healthy 299,400. So I kept it on my watchlist and traded it when it set up. The 50d average volume is not something that I consider in my trading at the moment.
2) Answer is sort of in multiple parts. Firstly my job is in IT, so I am sat in front of a computer screen most of the day anyway.
Secondly,there is a certain amount of flexibility in my workplace with regards to internet access etc, so I am fortunate in that regard.
Thirdly, I am based in the UK. The US market open occurs at 2:30pm my time. So I don't need to look at the markets until well into the afternoon anyway. Then the rest of the session falls into UK evening time when I am home anyway.
I have a max of 4 or 5 positions open at any one time and in fact recently it has only been 1 or 2. I always have my stop and target take-profit orders in place as soon as my position has been opened. After that it's just a case of monitoring to see if we can reach 1R or if we have to close early. If we reach 1R, then I am at breakeven and I tend to just let it run and do its own thing (easy to say, but very difficult to do..it has taken me a long time).
3) This is something I have been thinking about recently. I will post my thoughts fully in a separate new post as I have had a few other queries on this subject.
4) Good question. Again I will post a bit more about my history in a separate post soon. But in short, yes I have tried other methods but this is the one which sits well with my psychological makeup and which I feel most comfortable with.
Glad you like the blog.
TR, thanks for prompt response.
BTW, what kind of leverage does your broker offer you in the UK? Here, in the states, it is 4/1.
Also, I read on your blog that you use IB as your trading platform. Do you often experience slippage or do you get executed at your targeted price?
Do you place open market stop orders or limit orders? I always place open orders to enter and exit at market, and experience $.02-$.05 per share slippage. Do you recommend otherwise?
Thanks, Ralph.
ralph.
Leverage with my broker IB is also 4/1. I also have a backup broker (DirectAccessElite) where again the leverage is the same.
Havne't experienced much slippage in my experience. It does happen now and again on getting stopped out etc. And sometimes I haven't been able to open a position because the stock has moved too quickly.
To be honest i try not to get too bothered about a few cents here and there on slippage etc. If i was scalping numerous times throughout the day then fair enough. But I have a handful of trades a day.
To open an order I use a STOP LIMIT order. If the spread is wide then maybe allow a few extra cents to improve your chances of getting a fill. My exits are LMT orders (for profit taking) and STP orders (for getting stopped out for a loss).
Thanks TR.; Hope you caught KLAC today. Ralph
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