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Monday, February 20, 2006

Viewer mail - 021706

"I would like your analysis of WLT from Friday, 30-minute chart. Was the third bar a good entry to be long and then selling at the 34?" - Tom in Manchester

I posted the 30-minute chart of WLT below, with Tom's entry and exit marked.

I think this was a good trade, as long as you adhered to your stop. The negative(s) were a wide-range first bar with a long upper tail/wick, and a weak second bar.

The positive(s) were a green close on that first bar, and failure to penetrate the Opening Range low with both the second and third bar. Also, the second and third bars are narrow-range, inside bars with the third bar being an NR3. Finally, we see higher lows in both the second and third bars (some of you may call this a triangle).

On another note, I am glad to see someone trading 30-minute charts! On day's like Friday when the 15-minute charts do not provide many trades, looking at a 30-minute chart can give you other possibilities.

(see my thoughts on timeframes here)

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