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Sunday, March 26, 2006

Friday's charts

Charts with abbreviated analysis:

GLG; 15-minute chart - a gap up and wide range first bar. The second bar narrows in range, prints a higher low and a higher high, and closes at the OR high. The entry was a break of the second bar high, and the target was the Fibonacci extension of the previous day's low to the OR high. It was hit around Noon.




ESRX; 15-minute chart - a gap up and wide range first bar. The second bar is a narrow-range, inside bar. The entry was a break of the second bar high, and the target was the Fibonacci extension of the previous day's low to the OR high. It was hit before Noon and price reversed exactly at that point.




BVF; 15-minute chart - a gap down and wide range, weak first bar. The second bar narrows in range and attempts to rally, but does not penetrate deeply into the real body of the first bar. The third bar is a narrow-range (NR3, NRM), inside bar that closes weak. The entry is a break of the third bar low, and the target was the Fibonacci extension of the previous day's high to the OR low. It was not hit, but the stock drifted lower most of the day - 1/2 was closed after $1 gain, the other 1/2 was closed at the end of the session.



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3 comments:

Harold said...

I traded ESRX and learned a lesson. Take my profits at the fib extension! I still made money, but could have made much more. Thanks for sharing your trading style, you have changed my trading life!

Trader-X said...

Harold - I just had a similar email conversation regarding exits with a reader - something that might be applicable to your comment:

One of my biggest problems early on was taking profits - that is why I [usually] adhere to a solid plan of taking profits at my target. I used to rack up profits, not cash out, and watch them slip away...or worse, turn into losses. Once I decided to start setting targets and take my profits (and not worry about selling at the exact high), things turned around. Regardless of what methodology you use, I think this is one of the most important things you can do; to put it more simply, perfect your exits - they are often time more important than your entries.

Anonymous said...

Great advice and I love your site. Keep up the good work. Javier