AAUK, ACI,AEM,AVY,BHP,BTU,BVN,CLR,CNQ,COG,X,HIW
KFY,KMB,LIZ,MTL,NFX,OI,PBR,PCX,RRC,SID,SNY,STO,TS
I had limited time today due to work commitments, so wasn't able to watch the markets for the usual time. Only one trade to report.
PBR (gap down)
Inital sideways action for 3 bars is followed by break below OR. We then get the retracement we are looking for on the 8th and 9th bars. The 9th is off the OR and closes below the ema. This is our short trigger.
Entry: 40.54 Stop:40.95
Fib Ext: 38.48
1R=40.13 2R=39.72 3R=39.31
The price looks promising after entry as it falls over the next two candles. However we get stopped out for a loss on the next set of candles. In hindsight maybe a stop above the whole number would have been better, but I've seen those taken out before as well.
As usual to add insult to injury the stock falls big time into the close. That's the pain of trading...and it does hurt sometimes :-) .
I did have an order in for STO but that never triggered. Not much else I could see for a decent entry. As I mentioned above I did have limited time today so may have missed some decent setups, not sure yet as I haven't had time to review all the charts.
11 comments:
I traded the exact same setup... went right to the fib extension too :-( Oh well.
Greytrader.
Yes...that is tough to take. Just out of interest, where did you place your stop ?
when i was the chart i thought "way to stay with it!" i see you got stopped.
Hey TraderAm,
I thought you are always taking partials at 1R and then set your stop to B/E?! If so, the trade provided a partial at 1R and then you should have been stopped out breakeven with the rest of the position.
Am I correct or did I get something wrong?
Thanks and keep up the good work!
J
anon.
The candles after my entry didn't reach 1R. The 12th lower tail was a spike as I didn't get filled on my 1R. I am assuming that of course as i wasn't watching the market at the time.
qqqball..
Yes I know, I liked the entry and the chart shows a nice trend. The pullback just got me unfortunately.
fwiw: I've been partialing at 1R based on the high/low of the entry candle not the executed order price. Usually doesn't make a difference and what you've been doing had worked brilliantly so far. Really, don't change a thing. Seriously. Clear? :)
00nr7,
OK boss...I won't :-)
Traderam,
My stop was at 40.90 the high of the entry candle. I moved my stop to BE at 40.26 and ended up getting stopped out at BE. 1 penny less and I would have been stopped out for a full R.
Hi TraderAM,
Your blog is great, just found it today. I'm a newbie so excuse my questions here but what is 1R, 2R etc...
Also why didn't you enter the trade on the 3rd candle (smart decision, I jst don't understand), why since it broke already then the open range low?
looking forward to continue learning here.
Thanks,
Elad.
Elad,
Glad you like the blog.
1R, 2R etc refer to Riskvalue. So If I risk 50c in a trade, then 1R=50c. So if I am in profit by 50c then i have gained 1R.
The 3rd bar was still in OR, so I didn't want to trade it.
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