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Monday, July 10, 2006

Monday's action

Posting will be light today and tomorrow as I prepare for my trip to England, but I am trading and will put up a few charts.

KRON was a nice long this morning (15-minute chart) on a break of the fifth bar high. See if you can figure out why, and I will post a chart later tonight.

I hope everyone is having a profitable day.

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9 comments:

Anonymous said...

KRON (15 min): why not on the break of the second candle, the hammer at the low of the OR?

Trader-X said...

Babak - a few reasons for me. First, that first bar was really wide range, and I was leary about taking any position directly after it. Second, I prefer for the hammer to close green - a small distinction but one that increases the probability of the trade. Not to say I have never taken a trade on a red hammer - but it is not my preference.

Anonymous said...

I applied Alan Farley's 3Bar 5 min break out/break down on gaps Mon using Briefing.com premkt only(Long the b/o, short the b/d on gap up//short the break down, long the b/o on gap downs):
Ups b/o: smsc bios csh ande bbc
b/d: mobe mikr tzoo xing dis
Downs b/d: cnct emc kron sgr kgc
hmy
b/o: cnet chtt
What I noticed: if a narrow OR the shorts worked well: idcc cnct. Wide OR didn't: kron sgr. Delayed OR b/d worked for emc. Gold stocks kgc hmy reversed the b/d, and cnet chtt closed the gap and rallied. Thoughts?

Anonymous said...

5min 3 bar break worked well on alot of stocks today: mrvl sndk amd and wait for a reversal...if any

Anonymous said...

Trader-X,

I looked at MTU today and entered at the high of the 11th candle (a Hammer) but it did not work. Any thoughts on this trade.

Peter

Anonymous said...

Peter - just my 2 cents...I see the hammer, but it was not at any kind of support was it?

TJ

Anonymous said...

Peter, my 2 cents also: your buy price is in the bottom 50% of OR with no Fib retracement. I would probably stay away. X might give it a C or D. I usually stay away from financials except brokers. I can't depend on Scottrade for correct candles other than the 11th is a wide green. BL

Anonymous said...

MTU 11th candle was at support - opening range low. Similar to KRON.

Anonymous said...

I only look at the OR low when there is a gap down. And, the OR high when there is a gap up. I have not seen X do it any different.

In the case of MTU, I would have liked to see the hammer form at the retracement zone, but it never made it that low. So, I didn't take the trade.