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Tuesday, August 01, 2006

SKM - 080106; 15-minute chart

1.) What did I see?
A gap down and attempt to rally with the first and second bars. The second bar leaves a long upper tail, and the third bar resumes the decline. Price continues to fall, and the seventh bar prints a "hanging-man" candle that closes below the opening range (OR) low.
2.) What is the entry?
A break of the seventh bar low.
3.) What is the exit?
The position was closed at the Fibonacci extension of the previous day's high to the opening range low.

Set-up grade = B+

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Glenn said...

Nice one Mr. X. When I look at a 30 min chart, a nice red hammer forms with the same low as the seventh bar of 22.20. Do you find the same ever? Also if I may ask while I am here, when you look through all your picks for the day do you use one chart on your monitor and go through them or do you fill your monitor with charts? Also do you plot your fib lines once the 15 min bar is printed on each stock you watch or do you wait till you see something setting up?

Trader-X said...

glenn - I actually "flip" through all my charts rather than have a screen filled with charts; it just works better for me. The first three hours a day are just me flipping through charts...it will give you a headache if you watch me!

Regarding plotting the Fibonacci lines - it depends on if I have time. It is probably a combination of both. But, I have been looking at Fibonacci lines so long I can "mentally" see them, so many times I wait to see a set-up form before actually putting them in; again, it kind of depends on how hectic the morning is...

John Wheatcroft said...

Quick question - how do you choose candidates when you have more setups than you can handle? I'm playing a couple (PWR and MDRX) this morning that are running nice right now but I think it was just blind luck that I picked those two and not two others.

(Maybe not a quick answer but any answer will be better than none - and thanks in advance).

BTW - I too "flip" through charts - I've found that any other method just confuses me.

C.J. said...

I think that is where the grading system comes in, and only taking the best setups.