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Tuesday, July 25, 2006

Tuesday's charts

I still feel like I am "shaking off the rust", but there were some good opportunities to take advantage of today.

DXPE was a nice long from an entry on a break of the eleventh bar high; the eleventh bar was a narrow-range (NRM), inside bar that closed above the OR high.

ACL was a nice long from an entry on a break of the twelfth bar high; the twelfth bar was narrow range and closed just above the OR high.

Answer (the rest of) the three questions on your own.

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5150 said...

Well X.....I traded UPS short on the break of the 4th bar. It was similar to AMD on friday that I spooked out of early. I covered at the infamous half way point for a 1.30 gain. I figured chances were slim for a full extension move considering the stock was down around 12 points.

Trader-X said...

Great trade...you could almost argue for a long on a break of that ninth bar high.

Anonymous said...

FWRD, break of 15th bar hanging man. Not an X trade, but an X inspired trade.


Randal said...

30-minute chart of myog, break of the 3rd bar.

5150 said...

X....so you would get long a stock on a candle signal even though its trading under its opening range? In this case UPS.

Trader-X said...

5150 - I said "almost" argue...

Actually, we have discussed in the past taking trades at the Fibonacci extension on a reversal. I don't necessarily recommend it as they are not high probability trades. But I just noticed how UPS formed a few hammer-type bars at that support (the halfway point between the low and Fibonacci extension).

John Wheatcroft said...

Here is something to watch in your daily trading. Put a chart of the VIX on a 5-minute basis on one of your screens. If it prints a bottoming or topping formation you can use it to verify your trade. For example on Tuesday the VIX printed a top at 12:05, about 15 minutes later Trader-X took ACL and DXPE. TJ took FWRD about the same time. UPS turned around about 45 minutes before that time and could have been taken at 12 for a long.

Check this out on your own - I use it to scalp high volume high beta plays almost daily.

QQQBall said...

it looks to me that one of the "safest" conter-trend longs is at the test of the LOD, preferably on the second 15-min bar after the first bar has some sort of positive action - i give it .11 cents to .25 cents on a stop loss). it also helps if the stock has been a stud such as IBD 100 ("dipper" demand), if the LOD is near support on higher timeframe, if the gap area is fairly "common" (therefore higher probablitry to fill) and if the market appears to be bouncing. also, if the market has been down on friday and monday, id be more inclined to play for a bounce on turn-around tuesday. personally, i trade almost exclusively in the direction of the gap.

nice trading!