Didn't really expect it initially, but of my best days today profit wise. Holding until end of day brings big benefits on a day like today if the market moves your way. Both my trades were long trades based on the market bouncing from oversold levels.
WHR (gap down)
Gap down and a big sell off as the stock falls rapidly. It begins to halt it's decline as it approaches the $38 level. The general market had sold off it's inital gap up, but then began climbing again after reaching oversold levels. This coupled with a potential bounce after 6 consecutive red bars was my entry criteria.
Entry: 38.63 Stop:38.10
Fib Ext: n/a
1R=39.16 2R=39.69 3R= 40.22
The bounce was swift after entry and we took partial at $1 gain (around 2R). The rest I left to run. Once we had cleared the decade $40, the big key was whether it would hold. Once it did and with the market gaining strength as the day went on, then this was always going to be a big gainer. I closed the remainder of my position at end of day for just over $6 gain.
UA (gap down)
Gap up and we fall towards the previous day's high. We gain support at the $20 level as the price slows it's decline. It begins to halt it's decline as the general market climbs after reaching oversold levels. This coupled with a potential bounce from $20 was my entry criteria. The 6th candle is a green hammer closing strong to add confidence to our trade.
Entry: 19.83 Stop: 19.58
Fib Ext: n/a
1R=20.08 2R=20.33 3R= 20.58
We took partial at 2R and left rest to run with stop at breakeven. Once we had cleared the decade $20, and held it then the signs were good. I closed the remainder of my position at end of day for a $3 gain.
You may consider my entry timings as high risk since there is always the possibility that the support levels wouldn't have held and we could have plumetted further. I wouldn't argue with that view, but the higher risk you take with an entry will also give you greater rewards, so as long as you are comfortable with it then that is the key. In fact if you look at the two charts they both gave lower risk entries later on as the day progressed.