ANN,APS,CAL,CCOI,CHK,DRS,ECA,ERES,EXM,FDX,HBC,
HCC,IMCL PSA,RIMM,SBAC,SWN,TS,VAL
Not sure if I will have time to trade today due to work meetings.
Update: Well, looks like I missed out due to work. Even though the watchlist was small, there were a few opportunities. A couple of charts are shown below.
ANN (gap up)
First candle is green and indecisive. We then have sideways price action and a shallow fall to the ema where we find support. The 8th is strong green as we start to trend up with the ema. The 9th tests the oR and falls back. Then we have strength on the 10th candle. It is strong and breaks thru the OR. It has support of the ema close by and closes strong itself. This is our trigger
Entry: 27.71 Stop: 27.29
Fib Ext: 28.73
1R=28.13 2R=28.55 3R=28.97
After entry we don't look back and climb strongly. We would take partial at the Fib Ext (around 2.5R) and leave the rest to run. Not sure if the 20th candle would have closed our position or whether it was just a bad data spike. Either way this was a nice looking chart and good rewards.
EXM (gap up)
First candle is green. The 2nd doesn't really inspire confidence, but note how this will influence our trade later. We trend up and sideways keeping the ema as support nicely. The candles 7th thru 10 from sideways consolidation at highs with narrowing candles. Also see how they hold the $48.00 as support, this is the same level which the 2nd candle bounced down from. The 10th is NR3 and NR7 and off the ema with longer tail. This is our trigger for a long.
Entry: 48.45 Stop:48.08
Fib Ext: 48.23
1R=48.82 2R=49.19 3R=49.56
After entry we go sideways for a while, but then we get a very good run later in the day. Since we are already past the Fib Ext, I would have taken partial at 2R and left the rest to run until end of day. An excellent gainer this one.
Overall it would have been a good day. Interestingly, just a day after I posted info about watchlists, we have a situation where the watchlist is small but we still see a few excellent opportunities. This is ideal, because there would have been ample time to cycle round the list and not have missed out on entering these trades. I'm only sorry I missed out :-).
7 comments:
so that ANN bar breaking out of OR - you wouldnt ever buy that? or do you always wait for next bar after OR breakout to buy?
"Not sure if the 20th candle would have closed our position or whether it was just a bad data spike." - It was a data spike so it would have been a great trade.
For EXM, do you regularly go for these types of setups that have already passed the Fib ext? If so, what do you use as a target or do you just play it as it goes?
anon
The 10th bar breaking out is the trigger bar. I buy when it's high is exceeded on the next bar.
rz..
If the chart is looking good and with a pattern I like then yes I trade them. But they are not a big proportion of my total trades.
Target > 2R or 1$ gain as first target then end of day as next target.
TR: ANN long tail was a late tape, so would have been a great trade. Ralph
Thanks for going over the charts of the of the day, in terms of what you wouldn't have traded, can you tell me why you passed on the following from today?
CCOI 945, ECA 1030, RIMM 1030, SWN 1215
Thanks!
chartguy
CCOI > The earliest I would trade is after 3 candles. The 2nd is also a bit far from ema.
ECA > The 5th is not a particular pattern candle on my charts. It's just a normal green candle.
RIMM > I did look at that in hindsight, but I felt the stop was too wide.
SWN > I wouldn't argue too much if you took this trade. Maybe the previous price action was not ideal i.e. choppy and no clear trend down the ema.
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