Thursday, 23 October 2008

Trades 23/Oct/2008

Watchlist:
AEM,AMGN,AMZN,BHI,BHP,CNX,CTXS,FFIV,GG,LLY,
MCD,MOS,NOV,PLD,RHI,SNE,TEX,UNM

FFIV (gap up)
The initial price action looked promising after the gap up with higher lows despite the market coming down. The 4th is a NR3 candle and was our entry point.

Entry: 22.23 Stop: 21.89
Fib Ext: 24.26
1R=22.57 2R=22.91 3R=23.25

The price move sideways after entry. But the whole number at $22 was providing good support. However later that gave way and we were stopped out for a loss.

TEX (gap down)

This was a trade in the last session, where recently there have been some good price moves. The price action shows a bounce of $13 and then a trend up with the ema. The entry candle was bullish with long tail and also closed strong. This combined with general market strength was the theory of going long.

Entry: 13.97 Stop: 13.46
1R=14.48 2R=14.99 3R=15.50

Since this was a trade in last 1/2 hour of market it was just really a scalp trade. So I closed it out fully once 1R had been reached.

AMZN (gap up)

The initial price action was bullish compared to market and so I was looking for a long gap fade. The entry was on a standard OR breakout on candle 4 using market direction as confirmation.

Entry:46.13 Stop:45.65
1R=46.61 2R=47.09 3R=47.57

The price moves nicely up after the breakout and we take partial at $1 gain which is around 2R. I closed the rest near the previous day's low (around 3R) as it was liable to encounter resistance there. A nice gainer and it moved pretty fast. The total trade time was only around 20mins. It did move up further later on , but I was happy enough with my gain.

Overall a good day with 2 winners and 1 loser.

Using general market direction to time my entries and also to choose how to trade the gap is quite difficult in terms of watching different charts but it is proving to be quite useful.

6 comments:

Anonymous said...

In the AMZN trade, once you take partial, do you move your stop loss to breakeven?

Did you think of moving your stoploss after you saw that AMZN made a reverse and with the market being shaky at that time.

Ralph said...

TR: nice trading as usual. Ralph

TraderAm said...

anon.

Yes once I reach 1R then I move stop to breakeven. I sometimes take partial at 1R depending on market conditions and price action of the stock.

After my entry, the 1R was reached then subsequently 2R and 3R. So not quite sure which reverse you are referring to. My entry was at 15:25 GMT (or 10:25 US time).

Thanks.

TraderAm said...

Thanks ralph.

OONR7 said...

once again... great trading. I can tell by your success rate of new trades that you probably papertrade the hell out of them before pulling the trigger.

TraderAm said...

thx oonr7.