AAUK,APD,AZN,DRYS,ENER,HGR,IMCL,MOS,MTL,NVS,PCU,
PTEN,RIO,SAY,UL,WCN
It was too much of a rush today. Work committments meant that I got to the market late and also had to leave a bit earlier to get to the coach station. Shame really as there seemed to be quite a lot of opportunities today. In the end just one trade, and got a bit lucky again.
PTEN (gap down)
First candle is weak and is off the previous day's low. We trend down nicely along the ema towards the OR. The 5th breaks the OR and is followed by sideways candles as we consolidate towards the ema. The 8th is weak, off the ema and OR and also closes weak. This is our trigger candle for a short trade.
Entry: 21.10 Stop: 21.60
Fib Ext: 20.55
1R=20.60 2R=20.10 3R=19.60
We take partial at 1R as we are near the Fib Ext and then leave the rest to run. Normally I would have been stopped out on the remainder at breakeven. But I didn't set up my conditional orders properly as I was rushing away from work so the original stop stayed in place. Luckily the price fell later in the day after the retracement. So I closed the remainder at end of day for around 1.5R and a nice gain overall.
As I said above, I didn't really have enough time for the market today. Looks like I missed some opportunities in RIO, ENER, IMCL. Hope you guys got some of the action. That aside, it is encouraging to see a decent number of nice setups after the recent tough weeks. Hopefully this will continue and we can see good clean setups on both long and short side for rest of this month.
4 comments:
TR: please help me clarify. I seem to be confused on entries at whole #.
For example, the stock you traded today, PTEN, you entered break down of 8th candle low of $21.14. I expected resistance at the whole # of $21.00, and so I passed.
I did the same for EGLE, b/d OR low 5th bar $20.13. Was $.13 from whole # of $20.00.
1- Would you have traded EGLE?
2- At what point is whole # too close and becomes a resistance barrier, to raise your concern?
Thanks, Ralph
TraderAM
What do you use to backfill your charts? I use IB and recently I have problem backing filling my charts.
atrader..
I use DTN-IQ for backfill. I have used IB in the past and I did have some problems with them last year,so I switched to DTN. They seem to sort things out pretty quickly if there is a problem. On the whole I'm pleased with their service.
Ralph.
The situation with whole numbers IMO is that there is no hard and fast rule. You have to consider each case on merit. Personally I consider the previous price action.
Yes PTEN was 'near' whole number. But it had trended down nicely and consolidated below the OR. The entry candle was a good one. These factors outweighed the whole number IMO.
Sometimes you just have to take a chance. The key is what happens once it hits the whole number after your entry. If it bounces strongly then you could mitigate your risk by reducing your stop above that candle or closing your position. For PTEN the candle dropped thru whole number with no problems.
Decade numbers (e.g. $20.00) are more prone to stopping your trade, so I tend to be more cautious on these.
EGLE > Aside from the fact that I wouldn't trade EGLE due to volume of the 1st candle, I would have the following comments :
1. The 5th bar I wouldn't have traded for the same reason as you.
2. But there is no need to forget about the stock. Keep watching it and see how it behaves at the decade number. The 6th gets some support at $20. The 7th is NR7 which can't hang onto the $20. The 8th stays below $20. The 9th is gstone doji type which closes weak after trying to get back to $20. The 10th, 11th, 12th also do not get near the $20. Look at the whole picture, I have just described a 5 candle sideways consolidation which has stayed below the $20. It is close to ema and is begging to be shorted.
3. OK the $20 level was an issue originally. But not anymore for an entry we are looking at. The 7th, 8th, 9th, 12th are all valid triggers IMO. I hope you traded one of those ?
AAUK > Just for info was on my list and also had a $20 level near entry. This was the reason I declined the trade. The difference with AAUK was that the Fib Ext was around 19.68, so any entry below $20 wasn't worth it on R/R level.
One other point about about decade numbers is that if you do enter below, then it is worth considering your stop placement. As the price does tend to move back up and test it. So you may need some extra leeway on your stops if they are near the decade number.
Bit long winded in my response, but hope it is of some help. Keep plugging away, you'll get there.
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