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Saturday, August 19, 2006

A few charts from Thursday and Friday

Here are some trades from Thursday and Friday with very brief comments. If you are a reader of the blog, you should be able to answer the three questions on your own. If you are new to the blog, take a look at the charts over the past year and you will see how we trade.

CTXS - 0811706; 30-minute chart. The entry was a break of the third bar high which was the NRM and above the opening range (OR) high.

SLAB - 0811706; 30-minute chart.

The entry was a break of the third bar high which was a hammer that formed on/above the OR high.

CPWM - 0811706; 15-minute chart.

The entry was a break of the eighth bar low; the eighth bar was a narrow range (NRM), inside bar that showed weakness after the seventh bar's long upper tail (the set-up was below the OR low).

LAVA - 0811706; 15-minute chart.

A "bread and butter" set-up with a long lower tail on the first bar (somewhat bullish on a very weak bar), and a "hammer-type" second bar that forms on the retracement zone from the previous day's low to the OR high.

MLS - 0811706; 15-minute chart.

The entry was a break of the third bar high; the third bar was a narrow range (NRM), inside bar below the OR high*.

*as with any entry below/above a previous high/low (in the case of my charts, the opening range (OR) high/low), you need to watch for resistance/support as price approaches those levels. If it stalls, you want to exit. If it breaks through, the odds are good you will have a move to the corresponding Fibonacci extension.

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Anonymous said...

I have been reviewing all the posts on your site and a few others since I have made the decision to try and trade full time.
When you talk about penetrating lines, are the lines you are referring to Fabonacci retracements or a combination of retracements and OR highs/lows and others?
Thank you for the insight into your trades.

Anonymous said...

Hi, I am new the the blog. I have to said it's the best trading blog I've seen so far, please keep up the good work.
I have a question hope someone could help me answer. How do you determine the entry from "Narrowest range bar" since morning, because the next bar could always be smaller. What make you decide to enter after break-out of the current bar?

KayakHandy said...

Okay all of these great trades like MLS and LAVA were on my watch list but for some reason I fell into a kind of tunnel vision and only focused on a couple of stocks all morning and afternoon...this really lowered potential profitability by quite alot.

What I did was get stuck and kept waiting and watching for BEBE to break out above to the Fib extension or retrace...it just stalled all day. Also did the same for ANN, I was waiting for the retracement upward from it's lows or a continued downward move to the fib extention...both never happened but I wasted all day on these two nothings for a good setup.

Do any of you guys have an off kind of day like this where you know the good trades are out there but you just miss them even when they are sitting in front of your face?

Ronnie said...

Kayak, every single day!

Even X says he misses more trades than he makes every day.