AMLN,ASML,AUO,BABY,BUD,CA,CAKE,CHL,DRI,EAT,FRO,HIBB,NSM,
NUE,PPO,RCL,SSP,VRGY
Just the one trade today.
BABY (gap up)
A nice first candle and then the 2nd breaks the OR. The 3rd is weak and then we gain support from the ema. The 5th is hammer like and breaks the OR. It is off the ema and also closes strong itself. This is our long trigger.
Entry: 20.83 Stop: 20.65
Fib Ext: 21.31
1R=21.01 2R=21.19 3R=21.37
We move up nicely after entry and pass the 1R level. After a pullback we regain some strength and make new highs. I altered my exit plan on this since I was going out this evening and wouldn't be able to watch the market. Consequently I closed all my position at the Fib Ext for a nice gain of just under 3R.
There was another entry in RCL, but it was later in the day and so I didn't open a position.
All in all, a good day with a small watchlist and just one trade.
6 comments:
Can't complain about 3R.
Took the same trade myself although I used a wider stop and only half partialed at the fib ext, stopped out on the next bar. I barely squeaked out 1R.
What kind of exit strategy would you have taken if you did not have to leave?
pdt..
My exit strategy would have been similiar to yours > i.e. Take partial profits at the Fib Ext and leave the rest to run. This remainder would have stopped out at breakeven.
"This remainder would have stopped out at breakeven."
Does that mean you do move your stops up?
pdt.
My normal course of action is as follows :
1. Once 1R is reached I move my stop to breakeven.
2. So if I partial out (e.g. at Fib Ext or 2R or 3R or whatever) then the remainder of my position is at breakeven.
I meant to say.
Does that mean you do NOT move your stops up (besides the initial move up to break even)/
pdt.
Yes the majority of the time I do not move my stop up after the initial move to break even.
However in some situations where the price is moving very strongly and giving me multiple+R then I do move my stop up. This is to try to capture a larger profit just in case there is a big reversal, which often occurs after a very strong move. But these cases are the exception rather than the norm.
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