ACS,AGU,B,C,CBEY,CEPH,CPHD,CQB,DRE,DRIV,EQ,ERIC,FNM,GFA, GGB,IBN,ITU,KBR,MNST,PLCE,RATE,SEPR,SFI,SID,SLM,SPN,TTC,
HNSN,BWA
ERIC (gap down)
First candle is weak followed by choppy action along the OR low. The 7th candle breaks down from the ema and closes below the low. The 8th is a gravestone like candle whose wick bounces off the ema. It is also a NR7 and NR3. This is our trigger.
Entry: 23.82 Stop: 24.05
Fib Ext: 23.42
1R= 23.59 2R= 23.36 3R= 23.13
The price falls nicely after entry and we take partial profits at the Fib Ext. The rest is closed at end of day for a similiar gain.
PLCE (gap up)
The first candle is not ideal. But subsequent candles trend up with the ema providing good support. The 7th is bullish candle which closes right on the OR and whole number. This is our trigger.
Entry: 27.05 Stop: 26.42
Fib Ext: 28.45
1R=27.68 2R=28.31 3R=28.94
After entry we break thru the OR and hold it as support which is a promising sign. However there is no follow thru later in the day and we drift sideways to the close where we close our position for a minor loss.
2 comments:
TR: Nice run on ERIC!
I tried to short 1000 shares with my broker but none was available.
(1) How many shares did you short, and did you have any restrictions?
(2) Why is there no limit to buying shares, but when it comes to shorting, there is always some supply issues?
(3)Do you draw fib extension and retracement levels to calculate your profit potential, i.e, R/R ratios?
(4) Do you look on the daily chart for support or resistance areas to ascertain if the stock has enough room to run?
(5) or, do you just trade the set-ups as they become available on the charts?
Thanks again, Ralph
1) I only shorted 500 shares and it wasn't a problem with IB.
2) Don't know.
3) I work out the Fib Ext for my profit targets. If I'm entering a trade on a retracement then I sometimes draw Fib retracements.
4) No
5) Yes.
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