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Wednesday, September 20, 2006

NCR - 092006; 30-minute chart

I did not find a lot of opportunity today - maybe a result of my margaritas last night.

But, NCR was an interesting set-up. There were three factors that made it a buy for me - any one alone may not have been enough for me to "pull the trigger", but all three combined were a compelling reason. First, there was a set-up above the Fibonacci extension from the previous day's low to the opening range (OR) high. Next, there was support from a rising moving average. And finally, there were "offsetting bars".

The third and fourth bars closed above the Fibonacci extension, and the fifth bar declined and closed back below it. Price hit support from the rising moving average, and the sixth bar rallied from there and closed back above the Fibonacci extension. I entered on a break of the sixth bar high. I sold 1/2 of the position after $1 gain, and the remainder after price started back down following the extended, wide-range eleventh bar.

Ugly has some good things going on at his blog - check it out.

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Anonymous said...

X, check out RIMM. Similar to NCR and worked very nice.


Jim said...

Now I am getting way too many stocks on my watchlist. How do I cut back?

Trader-X said...

TJ - excellent.

Jim - cut out NYSE (look at Nasdaq only). Sort by volume and focus on the top 20 or so.

J. Judde said...

I find your blog very inspirational and educational. Thank you.

Simply Options Trader said...

For the NCR trade, does it bother u that the set up came during lunch hrs where volume is weak? Generally, is that a consideration for you? Thanks