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Wednesday, November 15, 2006

UAUA - 111506; 15-minute chart

I found a lot of opportunities yesterday, but very few today. Maybe I just wasn't in the zone. The good news is that although there was not quantity, there was quality.

UAUA gapped up with a wide-range first bar. The second and third bars consolidated, and the fourth bar broke above the opening range (OR) high. The fifth through ninth bars tested the OR high as support, and I entered the trade on a break of the tenth bar high. The tenth bar was narrow-range, and was "lifting off" or rallying off support from the rising 5MA (and the OR high).

The target was the Fibonacci extension of the previous day's low to the OR high, and it was hit seven bars later.

CTL also provided a nice entry above the OR high. Look at the chart and answer the three questions on your own.

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Tami said...

UAUA was a nice trade off the 30-minute chart 5th bar hammer.

Great blog!

QQQBall said...

Nice trading X.

i see teh entry on the second chart was after a kinda flip-flop on 2 previopus candlesticks. could you mention how you look at a set of 2 essentially opposite candles.

i worked today


Trader-X said...

Not sure what you mean. I did not see a real entry until the hammer above the OR high.

5150 said...

X....on UAUA...why wouldnt you of taken the break of 3rd bar 15 min. It was inside, narrow and hammer like.

Trader-X said...

5150 - no, it was too far away from the 5MA for me. I figured it was due for a pullback or some sideways consolidation. I look for entries as close to the 5MA as possible.

Jamie said...

The second chart looks familiar. I debated on waiting for a break before entering CAL, but decided to long the 8th bar following the NR doji. I knew that it would consolidate when it retested the early morning high. Luckily, it was a narrow consolidation and I was able to stay in the trade.

nickm said...

First, let me complement and thank you on the very helpful blog. I have been reading ( and trading for the last 2 months, 6 weeks actual trading). I am up ~30R over that period.
I took the same 2 trades today, but got stopped out on one of the spikes down out of CAL ( with ~ 1R profit).
Now question... Trader X, is there any place where you describe how you manage the trades? when do you move your initial stop, do you use trailing stops, if so, how tight are they, etc... I remember reading about fib targets only, but was wondering if you expand on other aspects of your trade management

XO said...

I think nickm poses a great question.

I would love it if you could expand on your trade management.

As well, X or Tom C, what type of orders do you use to get filled - market or limit?

Do you ever "chase" an entry if it runs away from you?

QQQBall said...


i rememebr you commenting earlier about a gravestone followed by a hammer - almost opposite candlesticks one right after the other. sorry is wasnt more clear.

Trader-X said...

Trade management is simple - I have a target, and I usually hold until it gets there. I will close a position early if it appears the move is over - this is usually indicated by a solid break of the 5MA, or a reversal pattern of some type (for example, I am long and there is a bearish candle pattern). If you look through the blog you will see some areas I watch closely for reversals - such as the 1/2-way point between the high (low) and the Fibonacci extension.

With UAUA, it never really paused as it moved to the target - I don't think price ever took out the previous bar's low.

With CAL, the 21st bar broke the 5MA, but the low of that bar was never taken out so I held until the end of the day.

xo said...

So X, how bout market vs. limit orders?

How do you make sure you don't miss a good move but avoid chasing?

Or do you wait until a low risk entry surfaces?

estocastica said...

nickm: dude, you're up 30R over 6 weeks and you have only been at it for 2 months total! i have to say those are amazing results for a beginner. to average +1R per day for such a rookie is, quite frankly, astonishing. Maybe it's just me, but I still struggle to maintain such an average. at this rate, you'll get a book deal within the year!

Trader-X said...

xo, not sure what you mean by low risk entry. My entries are a break of the high (or low) of the trigger bar noted on all my charts.

As far as market vs. limit - probably 90% market, 10 limit. If price has moved to far from the entry, I won't chase it...there is always another set-up.