AGU,AMX,BBD,BCS,CSIQ,CTXS,CX,DRYS,DSX,ELN,FRO,GNK,GR, HK,JASO,RIO,ROH,SMTC,SOLF,SOL,SQM,TEVA,TRA,UBS,YGE,
BHP,GGB
The market is tough at the moment. So today I tried to make a stronger effort to hold back and only trade what I considered to be the best setups. Why now you may ask ? Well, before market open, I had gone thru my charts over the past few months and it is evident that some slightly below par set ups were still giving decent rewards during that time. Whereas in the current market they are being chopped, so being more patient and more disciplined is the key IMO.
As a result, I only did one trade today.
ITU (gap up)
After 1st red candle we just go sideways for next several candles staying within the confines of the OR. The 7th is green and breaks the OR. But we can't hold this and retrace back into the OR on the next candle. We then bounce and the 10th breaks the OR again. It is bullish hammer like above the ema and OR and closes strong. This is our long trigger.
Entry: 22.91 Stop: 22.69
Fib Ext: 23.21
1R=23.13 2R=23.35 3R=23.57
The next candle is promising as we hold the OR. Then after that we have a nice tidy trend up the ema. We take partial at Fib Ext (just above 1R) and leave rest to run. I trailed the stop at 2R once that was reached towards the end of day as the general market was weakening.
Entry: 22.91 Stop: 22.69
Fib Ext: 23.21
1R=23.13 2R=23.35 3R=23.57
The next candle is promising as we hold the OR. Then after that we have a nice tidy trend up the ema. We take partial at Fib Ext (just above 1R) and leave rest to run. I trailed the stop at 2R once that was reached towards the end of day as the general market was weakening.
As mentioned above, this was my only trade. Some others which I did consider, but declined are as follows. As it turns out, some of these would actually have worked out fine.
SMTC > Short using 9th as trigger. Declined since it was already at the Fib Ext.
RIO > Long on 5th bar as trigger. Declined since IMO it was too wide range as entry trigger.
GGB > Long on 4th as trigger. Declined due to ema being too far away.
GGB > Long on 8th as trigger. Declined due to ema being too far away.
6 comments:
Nice catch on ITU. Was not on your am watch list? Do you "completely" ignore intra day market action, and just trade the stock's chart pattern?
So true about the market.
Where did you come up with ITU as it was not in your morning IB scan.
I debated ITU (same entry as yours) but didn't like the upper wick on the entry bar. I also didn't like how it was right below the round number of $23. Unlike the example we talked about yesterday... this stock had not penetrated that mark yet. Did you take that into consideration?
Also... what do you define as 'wide range'? Do you compare it to the other candles on the chart... the closing price... or something else?
ITU > Was in my IB scan, but I must have missed typing it in the blog. The last three on my scan analysis were BHP, GGB and ITU.
I don't tend to set too much store by general market action when deciding on my entries.
oonr7.
The ITU trigger bar had a high of 22.87 and a close of 22.86. So I still felt it was a bullish close.
Whole number was still a fair distance away in my IMO, bearing in mind that candle width so far was in region of 10-13cents. In fact the next candle completely formed above the OR and we still had not reached the whole number.
'Wide range' > yes I tend to compare it to other candles on the chart. I assume you are referring to RIO. I was very close to entering a trade on that. It's just that the previous entries of this type didn't work out for me, so I hesitated on it. It could well be that I was being ultra cautious today :-).
P.S > good trading today, nice to see that you back on track.
thanks traderam. I know what you're talking about regarding ITU and really not being so close to the whole number. However, given I add .02 to my entry and another .02 for slippage I was possibly looking at a 22.91 entry price. I figured a .09 gain wasn't worth the potential reversal. Of course... I watched all the way as the stock did well (as did you, nice call). My high was .87 and close .85 so it was a bit more of an upper wick.
I have to say the :15 charts are so much more relaxing. I also have plenty of time to sort my watchlist exactly the way I want.
Not sure if you were watching EXM but that was another that I was eying (1:15 bar). Would've been a nice quick gainer.
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