posted by Trader-X:
Welcome to Tuesday. I had a "quick hit" with the 15-minute chart of GIGM.
GIGM gapped down and printed a wide-range first bar that closed weak. The second and third bars were narrow-range, left long upper tails, and had real bodies in the lower 1/2 of the first bar's range. The entry was a break of the third bar low (third bar was NRM). The set-up was far from perfect, as the third bar was above the OR low and the trigger bar left a small lower tail. But I entered the position aware of the increased risk.
I closed 1/2 of the position at the Fibonacci extension of the previous day's high to the OR low. I am holding the other 1/2 as of now (11:15 EST).
Charts later tonight.
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Tags:
Trader-X, Stocks, Fibonacci, Trading, GIGM
Tuesday, June 13, 2006
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2 comments:
Hello Trader-X. I am a long time reader, first time poster. Your blog is great, and I appreciate your generous sharing.
I took a trade in JBL this morning on the 15-minute chart. I like this set-up when you have a weak first bar and a weak second bar that closes below the or low. I don't think it is a trade you would make, but I have had a lot of success with it and came up with it from reading your blog. Works with longs too.
Thanks again.
Thanks Roger. You are doing what I always say, which is take what you read and use it to develop your own style. Best of luck.
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