AUO,BCS,BG,CSX,GPOR,LAYN,LULU,MT,MVL,NCS,PCX,
RVBD,SHW,SLT,TOL,UBS,VAL,WHQ,WNR
Only the one trade today.
WHQ (gap up)
First candle was bullish and then we have sideways consolidation along the OR. The 8th is bullish and breaks the OR. It is off the ema and also closes strong. This is our long trigger.
Entry: 93.38 Stop: 93.02
Fib Ext: 96.48
1R= 93.74 2R=94.10 3R=94.46
The price trends up after entry and we take partial profits at 2R. There is no follow thru after that as the price can't hold the whole number $94.00. The rest of the position is closed at breakeven as the stock drifts down at the end of the day.
7 comments:
TA, what do you think of 10/15 on WHQ? NR7 IB above the ORH. Would the upper wick discourage you?
TR: I am in a quagmire once again. Need some help.
CSX: What would be your rational, if any, for shorting this stock?
Here is my twisted logic:
(1) The 6th bar rejected OR and bounced-off 5ema, and did close somewhat strong, with just a tiny lower wick. As such,
(a) would you consider the 6th bar as just a red bar?. Or, because of the OR b/d, and rejection of 5ema, shorted?
(b) Because this bar was fairly wide range (i.e., somewhat extended from 5ema) would you have waited for an NR7 as a trigger bar (ie, give 5ema time to catch-up)?
(2) 13th bar seemed like a good trigger bar because of rejection of OR and close somewhat strong. But it was above 5ema and a green bar. Still, would you've shorted?
(3) 16th bar was an NRB-like but do you consider the upper/lower wicks, tiny as they may be, as just another red bar?
(4) By the time I decided to place my limit order on the 16th bar b/d, the stock got away within seconds. Do you recommend placing market orders?
Thanks for your input, Ralph
nice trade (I'm sure you've seen my post on this). Question: sometimes you take partial at 1R and other times 2R. When do you make that decision?
oonr7.
Exits are a bit subjective. But what I try to do is to take into account the following main factors : Fib Ext, $1 gain, 1R, 2R.
Generally I would say that my main target is to take partial at Fib Ext. The 'other exits' come in when this Fib level is either a large distance away or very close to say 1R.
If the Fib is close to 1R then I will take partial at 1R. If the Fib is a distance away and I can get to 2R or a $1 gain before the Fib can be reached, then I will take partial at those levels first in order to bank some profits.
To add to the mix, I try to take note of whole numbers and decade numbers when deciding on the above targets. For e.g. If the Fib Ext is $60.00 then I will generally take partial at say $59.94 to take into account a potential reversal.
I think someone said previously that the market doesn't know anything about my 1R, 2R etc and I should be taking partials at reversal candle patterns and/or support/resistance levels. I can't argue with that approach, but the one I'm using seems to work ok for me, so I'll stick with it for the time being.
ralph.
CSK > Yes i was watching this as well.
The 6th bar is just a red bar on my chart. So I didn't consider it as a trade. The bar previous is the one which rejects the OR (a longer wick), but it is green. I have taken these in the past with the view that it is higher risk.
The 13th bar is above the ema and I wouldn't have traded it. The 16th is just a red bar, again no trigger for me.
I just place STOP LMT orders when opening a position and never chase it if the price moves away quickly without filling you.
I take it you were watching the market at around the 13th thru 16 bars (around lunch time) ? If so then did you trade SLT ? As looking back, there were some good entries on 13th 15th and 17th bars. These were much better signals than CSX.
Hope this helps.
I agree about exiting near whole numbers.
TR: thanks for quick feedback. No I did not trade SLT. Was not on my watch list. Ralph
Post a Comment