ABX,AEM,AMP,ARW,BA,BCS,BRCM,CCL,CREE,EMC,GG,IPI,JAKK KGC,NSC,PAAS,PDS,PM,RHI,ROK,SGP,STLD,UBS,VFC,VMW,XL
PM (gap up)
First candle is wide range green. Then we have rising candles in upper 1/3rd of the OR. The 5th is strong green which confirms the OR as support. It also closes strong and is our trigger.
Entry: 52.24 Stop: 51.90
Fib Ext: 52.78
1R=52.58 2R=52.92 3R=53.26
The candle after entry is promising as it also bounces off the OR for confirmation of support. However we never get any follow thru and we are stopped out for a loss a few candles later.
PAAS (gap down)
First candle is weak and the 2nd breaks thru the OR. We then have some choppy upwards action as we retrace to the OR. The consolidation of narrowing candles occurs below the OR with candle being able to close above it. The 10th is NR7 which closes below the ema and confirms OR as resistance. This is our trigger.
Entry: 35.66 Stop:35.90
Fib Ext: 34.73
1R= 35.42 2R=35.18 3R=34.94
The price doesn't really do much after entry, it drifts sideways/down and we close at end of day for minor gain of around 1R.
6 comments:
TA: how do you find time to trade during the work hours, I mean don't you need to monitor the chart in real time? What platform you use for entering orders.
HT
HT.
My normal job is sitting in front of computer all day. This plus the allowable flexibility at work to work different hours allows me to trade. In addition being based in UK means I am trading in afternoon and into evening (UK time) which allows me more time.
I monitor the chart in real time for opening a position. Then I have my orders set up to Take Profits and Stop Losses, so I try to just let it run.
Platform: IB
TR: couple of ques:
(1)PM's 5ema seem "very" extended from prices at your entry point.
How do you determine that 5ema is close enough to price without fearing the inevitable pullback?
(2) Regarding PAAS, 10th bar was an NR7, but do you consider an NR7 a pattern candle when it rejects OR high/low and touches/bounces-off 5ema?
To me, it seem to be just a red bar, as opposed to an inverted hammer or hanging man candle which are more definitive.
(3) LFC b/o OR high on 17th bar. With the upper tail, I did not believe this was a pattern candle which closed strong, but just another green bar? Was I wrong?
(4) ACH, b/o 8th bar high, do you consider a classic set-up?
(5) MOLX, b/o 4th bar NR7, seem "very" extended from 5ema?
Please elaborate. Thanks, Ralph
just checked your performance table.
very nice - congrats!
ralph
1) yes the 5ema was not ideal. This area is a bit subjective. The fact that the candle was strong plus the previous price action was an uptrend made it worth taking the trade in my view. If you just look at the 5ema in isolation, then no it's not a good entry point. If you said that you would only take entries, where the ema gap was half that amount, then I wouldn't argue with that.
2) yes NR7 pattern candle, but take into account the previous price action. In this case we couldn't close above the OR for previous candles as well as the entry candle.
3) You are correct
4) Yes
5) Yes. I wouldn't have traded it. But it did work out ok :-)
qqqball.
Thanks..
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