ABX,ACI,AEM,AGU,AKAM,BG,BHP,CEG,CNX,EBAY,FCX,GG,
KGC,MON,MOS,MT,RIO,SAP,STO,SU,SYT,TRA,WRI,X
ACI (gap down)
First candle weak thru previous day's low. The 2nd breaks the OR before we get the pullback we are looking for. The 4th is the pullback candle which doesn't get above the OR. This was our short trigger.
Entry: 27.86 Stop: 28.30
Fib Ext: 26.76
1R=27.42 2R=26.98 3R=26.54
This entry setup was not very good. I rushed in a bit, the pullback candle was green, not an NR and the ema distance was not ideal. That plus the bullish looking 3rd, made me uncertain. So I decided to just close all my position once it reached 1R
SAP (gap down)
Indecisive first is followed by OR break on 2nd which also breaks the $50 level. The 3rd is a slight recovery. The 4th is the pullback we are looking for. It tries to retest the oR but fails and closes weak. It also doesn't have the strength to get near the the $50 for a retest. This is our short trigger.
Entry: 49.50 Stop: 49.90
Fib Ext: 48.87
1R=49.10 2R=48.70 3R=48.30
We trend down nicely after entry and reach 1R. We take partial at 1R due to multiple factors of 1R, whole number and Fib Ext all in same region. The rest is left to run, but doesn't follow thru and comes back to stop us out at breakeven.
Overall, only two trades. Not big gainers but both profitable, so I'll take that in current market. I did like FCX, STO and WRI but they didn't set up strong enough entry patterns.
2 comments:
How do you calculate the fib. extn in your trades and how do you use them?
Thanks in advance.
Taking shorts as an example: 1st point is previous day high, 2nd point is current day's OR low. Then a 1.382 fib ext using these two points. Most charting software will automatically calculate it for you.
How do i use it > As one of target areas to take profits.
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