AAPL,AEM,AUY,AU,BCE,BRCM,CBS,CMC,CSIQ,DIS,DRYS,EMC,JNPR, LFC,LOW,MRK,NTAP,QCOM,RIO,STD,TEVA,TSO,UBS,VLO,VRSN,YHOO
BRCM (gap up)
1st candle strong and this is followed by a pullback with a hammer off the ema. The next 3 candles are sideways but they all close above the OR which is bullish. The 8th is NR7 and off the OR and ema and also closes strong. This is our long trigger.
Entry: 28.10 Stop: 27.80
Fib Ext: 28.72
1R=28.40 2R=28.70 3R=29.00
Never worked out and we are stopped out a few candles later for a loss.
CMC (gap up)
First is bullish and thru prev day's high. We then have choppy action along the OR for next several candles. The 8th is bullish hammer like which breaks the OR and closes strong. This is our long trigger.
Entry: 34.35 Stop: 33.97
Fib Ext: 35.34
1R=34.73 2R=35.11 3R=35.49
Doesn't follow thru though. We close our position for a loss after the 10th candle closes back inside the OR.
STD (gap down)
First is indecisive. We break the OR after the 3rd but then retrace back inside. The ema provides resistance as we move back down again. The 11th is weak, off the ema and breaks the OR as well as closing weak. This is our short trigger.
Entry: 17.64 Stop: 17.82
Fib Ext: 17.36
1R=17.46 2R=17.28 3R=17.10
Again we don't get any follow thru after we reach 1R. Later we are stopped out for breakeven.
TEVA (gap down)
After 1st green candle, it just trends down tidily. The 5th is a IB and NR3. the 6th is NR7 and closer to ema and also closes weak. This is our short trigger.
Entry: 43.61 Stop: 43.89
Fib Ext: 43.23
1R=43.33 2R=43.05 3R=42.77
We trend down nicely after entry and take profits at 1R (close to Fib Ext), 2R (close to whole number) and also at $1 gain (around 3.5R). Because the stock was weak and the Fib Ext was close to 1R, then I decided to partial out at 3 levels rather than my normal two.
Overall a difficult day, but small profit, which is good. From the watchlist, MRK was another stock which had a nice chart, but I couldn't find the shares to short. UBS also looked good, but I couldn't find an entry I was comfortable with.
8 comments:
Hi TR: got a couple of ques:
(1) If, for example, position size is calculated to be 488 shares, do you round to the nearest whole #, eg, 500 shs?
(2)On all your chart, you always list 1R-2R-3R exit targets. Yet I never see you using the 3R as an exit strategy. At what point do you utilize 3R?
BTW, love the post you did on full-time day trading. It really helped me focus on some greater issues I need to come to terms with.
Thanks again, Ralph
ralph.
1) yes I always round to nearet whole number.
2) If 3R co-incides with Fib Ext or whole number etc, then I try to have a order in for it.
nice set-up on BRCM? just cuddnt swim against the market tide?
Hi TraderAM,
What's the reason you passed the 5th bar on CMC waited till the 8th? Thx in advance!
I have a Q regarding MRK - in this specific case, the Fibo's ext is inside the 2nd 15' candle, therefore you wanted to enter the position beyond it (I assume off the 7th, correct?). What are the rules in those cases? Do you have any statistics regarding the success of such cases? Would you wait to take profits at 2R? and if so, then why taking profits at the ext in cases like TEVA's (when the ext is less than 2R)?
TIA,
SS
qqqball.
Yes it was a nice setup on BRCM.
tl.
The simple reason, is that I missed it when I was cycling thru my charts. As it turned out, neither entry worked.
Thanks
stocksmith
MRK > Yes correct the 7th candle was my trigger for a short. I haven't done full statistics of these cases. But they don't present themselves that often and from memory I would say they succeed more often than they fail.
I'm slightly confused by second part of your question. My initial target is always the Fib Ext. So for TEVA I took partial at that sort of level (which happened to be just above 1R). For MRK, any partial would not be related to the Fib Ext as we have already passed it. So generally I would say, take partial at 2R. Other factors would also come into play : such as whole numbers.
Thanks
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