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Thursday, August 31, 2006

Thursday's charts

If you read the blog, you know that Tom C. uses the same techniques I do - but, you also know that Tom C. likes to take on more risk. There is nothing wrong with that approach as long as you are aware - and comfortable with - your number of trades going up and your win rate going down.

Some people might call me a "perfectionist" - I prefer to take fewer high-quality set-ups and have the higher win rate.

BUCY was a trade I passed on because I did not like the first bar (too wide range) or the high upper tail on the second bar. But Tom C. took the trade on a break of the third bar high (30-minute chart) - the third bar being an inside, narrow-range (NRM) bar. And a nice hammer on top of the OR high. As you can see, it worked well for him!

I caught a great "late day" trade in JOYG (15-minute chart) as it broke above the Fibonacci extension. The 2:15 (EST) bar broke above the extension, and the 2:30 bar narrowed in range and stayed on top of that same level. I bought a break of the 2:30 bar's high, and sold for $1 gain as it broke below the 3:30 bar's low.

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