ABB,ACM,AMSC,ATPG,AUO,BHP,DLTR,DT,ENER,FFIV,GG,MINI,NWS, OCR,OMG,PDX,QGEN,RWT,TKC,UBS,UL,UN,WG,WRI
TKC (gap down)
First candle is red and 2nd drops below the oR. We then retrace back up the OR low. The 5th is weak and closes below the OR as well as closing weak itself. This is the first trigger. Then we have successive narrowing candles which can't close above the OR. The 8th is a NR7, Nr3 and bounces down from the OR low and closes weak itself below the ema. This is the trigger I took.
Entry: 18.46 Stop: 18.65
Fib Ext: 17.67
1R=18.27 2R=18.08 3R=17.89
After entry, the 9th and 10th were also triggers. We fall slowly towards the end of the day. The Fib ext is not reached. We take partial profits at 2R and at end of the day.
UL (gap up)
After gap up we have choppy action going sideways as we find support at the ema. The 7th is a green hammer bouncing off ema. The 8th breaks out of the OR. The 9th is a green hammer like which tests both the OR and ema and closes above the OR. This is our long trigger.
Entry: 34.35 Stop:34.13
Fib Ext: 34.95
1R= 34.57 2R=34.79 3R=35.01
Nothing really happened after entry. We just grind sideways for the rest of the day, where we close for a minor loss.
3 comments:
tkc... very nice trade. Also looked good on the 5. Question... what are your feelings about trading a stock that also gapped up/down the previous day? I've been removing from my watchlist with the thinking that the stock may be exhausted.
thanks oonr7.
To be honest, that hadn't even occurred to me, so I don't edit my watchlist based on whether the stock has gapped on successive days. Have you had past experience where the stats suggest that successive gaps are not as profitable ?
Thanks
it's kind of hit or miss but I have noticed more of a failure rate with stocks that have gapped up on successive days. Greytrader alerted me to this and how X used to talk about not trading successive gap stocks.
I'm avoiding them for now but I can be convinced otherwise if results back it up (like yours).
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