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Friday, June 02, 2006

BOOM (goes the dynamite)

posted by Trader-X:

In "Comments" yesterday, someone mentioned WFR as a failed set-up. Take a look at BOOM today - it is very similar set-up to WFR yesterday (both 30-minute charts), but there is one difference. That difference is the new "filter" I am working on.

(note - BOOM did not hit the Fibonacci extension, but did hit the halfway mark (and beyond) between the high and the Fibonacci extension and provided solid profit potential)

I don't want to talk about the "filter" yet, but it is nothing proprietary. Any one of you has the ability to look at the two charts and figure it out. I will talk about it later this month after I have had adequate time to test it with my trading - but don't let that stop you from figuring it out for yourself.

I will post some charts over the weekend. In the meantime, re-visit this old post.

FYI - there have been a lot of Blogger problems today, so if you have not been able to access the blog or post comments, that is the reason.

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Dave C said...

Any clues you can throw at us? : ) Does it involve any other indicators or than volume and a SMA?

Sameer said...

BBOX was a huge winner for me today...15-minute chart, 4th bar. Not exactly a hanging man, but close. I sold as it started to rally into the last hour.

Thanks for the great blog. Have a blessed weekend.

Sameer said...

Should have said I bought, or covered as it started to rally into the last hour.

Zoomie said...

OK, I will take a stab at it. The 15 minute chart looked strong....each candle printing a higher low on BOOM, before the breakout. The 15 min chart for WFR was weaker, and it failed it's first attempt at breaking 15 min O/R high. Since the 15 and 30 minute conformed, BOOM.

Jim C said...

Comparison of BOOM (today) and WFR (yesterday):
1) 30min - BOOM 2nd bar real body above 1st bar real body. WFR did not quite have that, but close.
2) 30min - BOOM 2nd bar low did not penetrate 50% level of 1st bar, WFR did.
3) 30min - BOOM has explosive 1st bar volume relative to previous action. WFR did not show such contrast. Although X typically does not analyze volume per bar.
4) 15min - BOOM had higher lows and higher/= closes on first 4 bars. WFR did not compare in relative strength and was displaying more of a swinging type action.
5) 15min - BOOM had volume contraction on bars 2-4 wrt 1st bar. WFR had higher volume on 2nd bar (pullback wrt 1st bar). Thus volume was confirming the price relative strength comment above (#4).

Since X normally does not study volume per bar, my money is on comment #4 which is essentially zoomie's comment.

Jim C said...

Clarification - Comment #2 was referring to 50% penetration of 1st bar's real body.