Since X mentioned 30-minute charts over the weekend, I thought I would post a good trade I made today. N gapped up but printed a few weak bars - it fell through the opening range low and the 4th bar pulled back to test that area. It left an upper tail, showing signs that the opening range low was now resistance (it was also the narrowest range bar of the morning). I shorted on a break of the 4th bar low and my target was the 50% retracement from the previous day's low to the opening range high.
One that didn't work...I was stopped out after buying a break of the 3rd bar high in CCL. It was a small loss and in retrospect the upper tail in the 1st bar was too bearish.
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Tags:
Trader-X, Stocks, Fibonacci, N, CCL
6 comments:
Hey Tom,
Thanks for posting one that didn't work. Makes us regular joes feel a little better when we having losing postions ;)
I just traded one stock today: NYX off the 2nd bar high. I hope you and others and can tell me that I did the right thing by selling on the sixth bar (after it broke the 4th bar low), because had I held on, I could have had a gain of over $2/share more than where I sold it.
My reasoning for selling where I did was for the bearish 5th bar and the sixth bar that formed a hanging man.
Hope others had a good trading day!
Tom,
Also do you or X or others after getting stopped get back into a trade at a lower or higher price if the chart looked good or just eject it from the list and move on? BTW could you refer to the IDCC comment?
Thanks,
BL
posted by Tom C:
Dave C - re: NYX, it is hard to say whether your exit was the right thing to do...I don't like second guessing! But, what I try to distinguish is a pullback vs. a reversal. NYX appeared to me to be a shallow pullback...it was at the high of the day with no obvious resistance, and the sixth bar left a long lower tail which is somewhat bullish (you said it was a hanging man - true, but the next bar did not take out the low). And, if you sold 1/2 after $1 gain as Trader-X recommends, you probably were more comforable giving it some "wiggle" room. All said, it just takes time and experience to figure out which is which...
I don't know if that is much help.
posted by Tom C:
bl - if a trade sets-up again, I have no problem entering it again.
Tom C,
Thanks for your reply and it did help. I was in a very similar situation last Thursday (SAPE - upper wick bar followed by a hanging man), but decided to wait it out and got stopped out. I thought this was going to do the same thing, but I noticed as you've said, the next bar did not take out the low (6th bar), and with SAPE, it did.
Thanks again for your insight.
I couldn't post a comment last night for some reason. Made a big% gain on HRT, 30-minute, 5th bar hammer.
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