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Friday, October 06, 2006

Friday's charts

posted by Tom C:

I wanted to put a few charts up for the weekend. X traded CRM off a break of the 3rd bar high. The 3rd bar was a hammer at support from the retracement zone and a rising 5MA (see X's post yesterday about using the 5MA). It did not reach the target, but was good for $1.





I have been trading 30-minute charts for several weeks, but took a few 15-minute trades today. ININ was a great long off the 3rd bar high. The 3rd bar was a hammer (yes, I trade red hammers - X doesn't) and note how the 4th bar was very close to the 5MA as it broke above the 3rd bar high. The target was the Fibonacci extension of the previous day's low to the OR high - it was hit two bars later.





MU was a nice short as it broke below the OR low. Note how the declining 5MA was providing resistance and "pushing the price down". The target was not hit, but it was a nice percentage gain.




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5 comments:

LP said...

X,

I too was looking at ININ and Mu. However, what is the reasoning behind not shorting MU under the 3rd or 7th bars. I was unable to place either trade as I had to leave shortly after any potential entry points to get my cholestrol checked. Monday will be another day. Hopefully a damn good one.

Also, do you still use real ticks or have you moved to trade-ideas. Have a good weekend.

KayakHandy said...

lp,

I am not X but I took that first short position on the break of the 7th bar after MU did the classic rise and then shorted on confirmation of further weakness with a stop just above the high of the 6th bar...that trade was half the position...the rest of the short trade was layed on where Tom C. entered...of course stops were adjusted.

I think taking the trade at the 8th bar was smart but I think X would say it was still above the opening range bars low and could have had a good chance of reversing.

Samuel said...

RealTick and TradeIdeas are two different things. TradeIdeas is used for scanning/finding candidates. RT is used for charting and order entry/trading platform.

QQQBall said...

thanks for posting Tom, nice trade. as to the hammer on 2nd 15m bar; if you combine it with the 3rd bar for a "theoretical" 30-min bar, its rather bullish.

thanks for posting the charts

LP said...

Fellas,

Thanks for your responses. So What I think some of you are saying is that the 3rd & 7th bars are still not close enough to the opening range lows and that the preceding bars (2nd & 6th) were bullish enough to show signs of potential reversal?

Let this noobie know the deal. Thanks, and hope you guys have a good week comming up.