AF,ALTR,APH,AVCT,BGG,CCK,CNW,CY,DHR,ERIC,IDCC,IGT,ISIL,
ISIS,LEG,MMR,NOK,NVDA,PKX,PLCM,SMSC,SOL,SVU,UMPQ,
VIVO,WERN
ALTR (gap up)
The first 2 candles retrace then we bounce back towards the OR. The 6th candle is green and closes strong at the OR. The 7th breaks out of the OR and also closes strong with the ema close by. This is our trigger.
Entry: 21.22 Stop: 20.92
Fib Ext: 25.46
1R=21.52 2R=21.82 3R=22.12
The stock moves up after entry, but does not follow thru. Then it reverses and comes back to the OR where we are stopped out for a loss.
LEG (gap up)
Strong 1st candle is followed by a retracement before we resume the uptrend on the 4th candle. We trend up with the ema and the 7th candle is green. It tests the OR before closing above it and also closes strong itself. This is our trigger for a long.
Entry: 16.49 Stop:16.20
Fib Ext:17.11
1R=16.78 2R= 17.07 3R= 17.36
The price moves in our favour, but doesn't follow thru past the 1R so we are stopped out at breakeven.
Overall, not a good day, but it happens. Can't win them all.
5 comments:
i got in LEG at 16.30 when it broke the OR high. Should have bailed at the fib extension at 16.80, but I got greedy and held it, and gave most of it back. ended up with about .5 R.
TR: Couple ques. on 15 min charts:
(1) IBM: 6th bar b/o.
Although the 4th bar upper tail was worrisome, I liked the hammer-like bar bounce off of ORH and 5ema. Also, NR7 consolidation on low vol. Any thoughts?
(2) CNW: b/d on 9th bar & 17th bar.
Flag like consolidation at OR low, with 5ema as cover. But yet seemed oversold. I Also liked the orderly pullback to OR low. However the 17th candle was above the 5ema. I believe the better trade was to wait for b/d 18th candle?
(3) VLO: b/o 7th bar high, assuming it did not reverse, would you've consider this trade able. Do you agree?
(4) UMPQ: b/o 16th bar high, from a narrow consolidation, and I liked the proximity to intra-day highs. I am assuming it did not had that upper tail whipsaw bar and it rallied, instead of b/d. Tradeable?
(5) On a different note, regarding your limit orders, if the stock pivot b/o point is $50.45, and bid/ask spread is $.05, Do you place your limit order at pivot + bid/ask spread of $50.50, or differently? I find the market is blowing past my limit orders and I am missing trades.
Thanks again and appreciate any input. Ralph
Traderam,
Do you find NYSE stocks to be easier to trade than Nasdaq stocks, or vice versa ? Love your blog.....you have broaden my education on stocks very much here. Thanks
"Q"
Q.
NYSE easier ? not really sure. recently maybe they do tend to trend better. But then I've had some weeks where Nasdaq stocks seemed to have nicer cleaner charts.
Overall I would say that I probably trade NYSE more than Nasdaq, but that just depends on my watchlist on any given day.
Glad you like the blog.
ralph
1) IBM : agree with your thoughts
2) CNW : nice chart on this one. For a bit higher risk, the 9th would have been a good trigger candle. It was inside OR, but a hanging man and NR7 and the previous price action made it worth the risk. In addtion it was near whole number, which if breached would have added confidence to our trade. In fact I missed this, as if I had been watching it at the time, I would have traded it for definite.
The 17th candle is also a trigger candle. Yes it was above the ema. But see how it rejects the OR, it is also a NR7 and it closes weak itself.
3) VLO : can't really see why I would have traded the 7th bar high. It's not a specific NR bar or a pattern candle bouncing off support ?
4) UMPQ: Wouldn't have traded it personally. Yes there is is consolidation, but we need a pattern trigger candle of some sort which bounces off ema or support area. The 15th is just a green narrow candle below the ema.
5) I add a few cents onto the BO price for my STOP price then a couple of cents more for my LMT price. If the spread is higher then yes I add a few more cents to the LMT.
So if trigger candle high was $50.45 > my stop limit would be $50.48 , $50.51. If the spread was a bit wider then $50.48, $50.55.
I don't really have any hard and fast rules on this.
Ok I miss some, but overall you get more than you lose.
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