ABI,ACGY,ADTN,AGU,ARW,AVT,AZN,CTSH,FCX,FRE,FRO,FRX, IBN,INFY,ITT,KCI,LDK,MEE,MTW,SCHW,SIGM,SOLF,SWIR,TMO,XLNX
AVT (gap down)
First bar is green but upper wick indicating bearishness. Then we trend down past the OR. This is followed by consolidation and a slight rise as we hit resistance of the ema. The 9th is a hanging man doji type candle which is also a NR7 and the ema is providing cover above.
Entry: 28.82 Stop: 29.10
Fib Ext: 28.90
1R=28.54 2R=28.26 3R=27.98
The price falls nicely after entry and we take partial profits at 2R. After that it goes sideways and we close at the end of the day.
ARW (gap down)
The 1st candle is weak, the 2nd is bounce up into OR. The 3rd is weak and the 4th is also weak, both of these close weak and the ema is close above. The 4th breaks the OR and this is our trigger.
Entry: 31.08 Stop: 31.52
Fib Ext:30.52
1R=30.64 2R=30.20 3R=29.76
The price falls after our entry, but then we get no further. The retracement from 8th and 9th candles is strong , but we don't close in the OR, so the trade remains open. We close at the end of the day for a scratch trade pretty much.
Another tough day overall. I probably missed an entry in CTSH, but apart from that I could not really find anything from my watchlist which gave me an entry that I would trade.
5 comments:
TR: If you will, can you please give me your take on the following stock:
(1) Jaso b/o 6th bar high.
I liked the orderly pullback to OR high on declining volume. The trigger bar was hammer-like and found support at the OR High and above the 5ema.
Were the prior bar tails a warning of subsequent failure?
Thanks Ralph
ralph
The upper tails on candles 3,4 and 5 would have made me wary. The 6th candle does break the OR but we are coming into it from a downtrend. I would probably have waited to see if the next candle could maintain the OR support.
The other factor for me is the 5th bar, which closes within the OR. Ideally in these sort of retracements I would like the OR to be held on a closing basis then a bounce off a pattern candle to go long.
Obviously easy to say in hindsight. Good question though.
The bar after your entry seems to broke the high of the trigger, where was your stop on AVT?
victor.
I specified my stop and entry prices in the post. For AVT it was $29.10.
As I've mentioned previously on the blog, I tend to give it some extra room when we are in region of whole number.
ralph.
On my watchlist, TMO is an example of a retracement which fails to get back into the OR. The 8th candle being a possible trigger.
Having said that, this one didn't follow thru either so would have been a loser.
Tricky market conditions at the moment.
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