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Monday, October 30, 2006

COP - 103006; 15-minute chart

1.) What did I see?
A gap up and weak first bar. The second bar attempts to rally but price turns back down with the third bar. The fourth, fifth, and sixth bars bounce around the OR (opening range) low. The seventh bar attempts to rally but fails, leaving a long upper tail (note the resistance from our friend, the declining 5MA).
2.) What is the entry?
A break of the seventh bar low*.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's high to the OR low. It was hit towards the end of the day - note how price reverses at almost exactly that point. Magic.

Set-up grade = B - only because the entry was (just barely) above the OR low.

*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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chud said...

X, Would you mind commenting on how you choose to go with 15 vs. 30 minute bars? It seems a couple of weeks ago you were posting all 30 min. trades and the last week it has been all 15 min. How do you decide what to concentrate on each day? Or will you make trades off of both time frames on the same day?


Trader-X said...

I make trades on both the 15 and 30 on any given day. I keep both charts side by side.

For the purposes of set-ups looking at the charts on this blog, it does not really matter what the timeframe is...a set-up is a set-up is a set-up. But, I mix and match what I post.

QQQBall said...

nice trade x... man, the 5MA is good indicator/

James said...

X, would you mind posting a link to that website that you posted a while back where you can type in a stock symbol and get all the message board posts on that company etc. Thanks

Trader-X said...

James - I don't think that was me. I don't know of the website. If anyone else knows, feel free to post it here.