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Thursday, December 28, 2006

GROW - 122806; 15-minute chart

Kayak mentioned his GROW trade in "Comments" on the previous post (by the way, great comments over the past few days - check them out).

He entered the trade earlier than me - on the eighth bar. I was more conservative and watching for price to close above the OR (opening range) high. The fourteenth bar did just that; it was also a narrow-range, inside bar and had solid support from a rising 5MA. And it was a hammer-type candle.

Price rallied from that point and hit the Fibonacci extension of the previous day's low to the OR high seven bars later.

Grade = A-

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Anonymous said...

had a decent trade with FCFS today. Though, I dunno if I took advantage of the opportunity fully. What would you have done?

Anonymous said...

Hi X
After that high volume bearish hammer opening bar, what kept GROW on your long watchlist? The only setup I'd be looking for after an opening bar like that would be a failure test short at the morning high. I'm curious what your thoughts were and how the setup still earned an A-.

Trader-X said...

First, I never actually take a stock off my list...if it is there in the morning, it is there all day. This was a small gap up, and I think I got it off the RealTick gap list (as opposed to my Trade Ideas scan).

Anyway, the first bar was bearish but the decline hit support from a rising 5MA and price rode it all the way up without ever closing below that level.

To me, it does not get much more compelling than that.

Anonymous said...

X, it was nice on the 30 too - break of the 6th bar hammer.

See you in 2007.


Trader-X said...

Excellent TJ - though I would give it a "B" as it is below the OR high.

Nice trade. Thanks for all your contributions in 2006 and please continue in 2007. We all learn a lot from you.

Jamie said...

GROW rallied up to its resistance high dating back to Dec. 18th on the open and failed. It pulled back to the MA and slowly made its way back up to the resistance level. It succeeded in breaking through on the third attempt (Dec. 18th being the first attempt) and set off a momo move.

That's trading nirvana. Nice work X and all the X disciples who traded it!

Trader-X said...

Thanks for the longer-term analysis Jamie. I learn something from you every day!

Happy New Year!

Jamie said...

Likewise X, and Happy New Year to you too!

Gary said...

GROW had almost same set up on 30' yesterday--other set ups today included RACK ( late in day) NTRI (short--late in day) SYMC, SHFL,( didnt expect much from SYMC--didnt get much :) what was I thinking?) RATE ( late in day double bottom play too) MA ( this thing sets up almost every other day so add it to your must watch list)NMX ( no shares to short though), TGT,POT(shorts)-the last two should be bread and butter set ups--should see plenty of these when the market rolls over--doesnt get any simpler than these two.

Gary said...

BTW guys who haven't checked out Highchartpatterns.com give it a try--3 weeks free trial--GROW HMIN ALXN GRMN --today were on their list--even the subscription is really low at 37.50$ --give it a try --they are fair people to criticize themselves and not unnecessarily toot their own horn. In 3 weeks you ll be able to see how it works--if nothing else, its free education--their market commentary is excellent.

Trader-X said...

I have talked to the guys at Highchartpatterns.com in the past - and I agree they are good guys with a quality product.

I was planning to do some things with their picks this year, but never got to it. Perhaps in 2007...

jrj said...

How do you handle the large spread on a stock like GROW? Do you use stop limit orders?

Trader-X said...

JRJ - if the spread is crazy, I will usually pass. But sometimes the set-ups are too compelling and I will always use a stop limit to get in.