Glad I found time to trade today.
BEAV (gap down)
First candle is red WRB. Then we trend down to the OR and cross it on 4th and 5th. The 6th is weak candle confirming OR as resistance and off the ema and closes weak itself. This is our short trigger.
Entry: 27.24 Stop: 27.74
Fib Ext: 26.35
1R=26.74 2R=26.24 3R=25.74
We move sideways initially, but then get the fall we are looking for. We take partial at Fib Ext which is around 1.5R then close rest at end of day (around 1R).
BHP (gap down)
First candle weak, then we trend down with ema and longish wicks indicating bearishness. We get the pullback at 5th candle. The 6th is bearish doji rejecting the ema. The 7th is NR7 below the ema. This is our short trigger.
Entry: 82.20 Stop: 82.48
Fib Ext: 81.67
1R=81.92 2R=81.64 3R=81.36
Never follows thru though and we get stopped out for a loss.
SFD (gap up)
Bullish first candle is followed by strong trend up. The 5th is red weak candle with longish wick as we pullback. The 6th resumes bullishness though as it closes strong and is Nr7. This is our long trigger.
Entry: 25.12 Stop: 24.90
Fib Ext: 25.11 (so doesn't come into play)
1R=25.34 2R=25.56 3R=25.78
The price gently moves up and we take partial at 2R and leave the rest to run. This is closed at the end of day for just under 1R.
SONC (gap down)
A bit choppy early on, but weakness is evident after the 6th candle as we move down with the ema. The 9th is a red gravestone doji type off the ema and closing weak. It's wick also tests the OR as resistance. This is our short trigger.
Entry: 15.17 Stop: 15.50
Fib Ext: 14.80
1R= 14.84 2R= 14.51 3R= 14.18
We move down nicely after entry and take partial at 1R (Fib ext) and leave the rest to run. This is closed at end of day for around 2R.
Overall a good day as it turns out. The market didn't really do much, but some nice moves on the stocks that were traded.
7 comments:
I didn't completely understand your stop on SONC (hi of the trigger candle was 15.38 and you wrote 18.50 - why?)
Also, if you closed it (SONC) at the end of the day you wouldn't have gotten the 2R but only 1R. What is the logic of waiting till the EOD while it clearly reversed after touching the 2R level (look at the 4th candle b4 the closing - big green vol after an inside green doji)
the cleaner.
SONC > My stop was 15.50 not 18.50.
In this trade my Stop was based on the OR (15.42) and I allowed a bit more as SNC can be a bit more volatile at times.
When I say I closed at end of day, I mean I closed during the last candle. My trade was at $14.57 which is just below 2R. (Did you see the trade times and prices on my post ?).
"Clearly reversed" > Yes maybe. But my method of trading involves waiting for eod. Of course there will always be times when you can say it would have been better to close after such and such a candle. However,during my paper trading and subsequent experience I got better overall results waiting for eod.
The other factor is that I don't have to sit in front of my pc all that time waiting for a "reversal". I can come back during the last 15mins and close my position then.
Re: the cleaner
Take a look at the cover price. He covered during the last bar, not at the last price of the day.
so once you've scaled out of a trade (1, 2R or fib. ext.) then you just let it ride with a stop at breakeven and check back during the last :15 of trading? Also, is breakeven based on your entry price?
Nice trading this week. I've found opportunities hard to come by. If you can make cash trading gappers this week you can quit your job now :)
oonr.
Thanks.
Yes spot on. Once I've taken partial profits, I look in last 15mins. The only exception to this is when I cannot watch the market in last 15mins (not that often).
My breakeven is based on my entry price.
I just realized I gifted away $8,000 to Ameritrade for commissions (at 400 trades x 19.95).
What would 400 trades cost you at IB (assuming 500shs each)?
Justin.
IB commission is $0.005 per share. So 500 shares would cost $2.50. Multiply this by 400 gives = $1000. Assuming I haven't made a mistake in my maths.
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