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Tuesday, September 05, 2006

HSY - 090506; 30-minute chart




[Blogger is having technical problems - the chart may not be clear]

1.) What did I see?
A gap down and wide range first bar that closes red. The second and third bars are inside, narrow range bars with the third bar being the narrowest of the morning (NRM). Both the second and third bars are in the lower half of the first bar's range.
2.) What is the entry?
A break of the third 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; the entry was above the OR low. I also did not like the long lower tail on the first bar, but it was somewhat negated by the action of the second and third bars described above.

*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. HSY breaks decisively through the OR low on the fourth bar.

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8 comments:

Anonymous said...

CHAP, 4th bar, 30-minute chart.

TJ

D.J. Florida said...

New to the blog, love it. How about shorting PETS, fourth bar on 30 minute charts.

John Wheatcroft said...

TJ - CHAP was a beautiful trade - I didn't have it - picked BRCM off the second, hammer-like 15-minute, BEAS off the 3rd an NR 15-minute, and after noon - RBAK off what I call a two-candle confirmation of a NR 7 bottom indicator. Made some on all of these.

The first day I came to this site I didn't believe, the second day I didn't believe, the third day I tried a couple and lost, on the fourth day I made some serious money - and by the fifth I was a believer. If you are willing to learn Trader-X is willing to teach.

T. Webb said...

Looks like we are all focusing on 30-minute charts this week. Check out TIE, break of 4th bar.

QQQBall said...

JOhn,

could you expand on the 2-bar confirmation of NRB-7?

thanks QB

John Wheatcroft said...

After I see a "narrowest range in last 7" bar (NR7) I wait for 2 up impulse bars before I take the trade. I am very conservative and don't mind missing a bit on the bottom. I find that this approach works well across every time scale from minutes to weeks.

Hope that helps.

Michael said...

I love the end of John's first post. X, you should change the by-line of your site to "Trader X makes believers" :-)

Trader-X said...

I am just a tool, and you guys make your own success.

; )