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Wednesday, December 06, 2006

LCC - 120606; 15-minute chart

1.) What did I see?
A gap up with price bouncing around in a range until 1:00 (note how it never decisively closes below the 5MA, though). At 1:00, LCC prints a strong candle that moves off the opening range (OR) high, closes strong, and has solid support from the 5MA.
2.) What is the entry?
A break of the 1:00 bar high.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's low to the OR high. It was hit six bars later.

Set-up grade = B+; the entry was above the OR high but the price action through the morning was a little choppy.

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Flatwallet said...

Is your enty for this type of setup over the O Range, or would you buy some at the 10, 11, 13th bar highs and buy the rest over the 15th bar highs. Also what if the 10, 11 & 13th bars were green bars, would that have made you to consider buying under the OR?

Great stuff. The "Chasing Success" challenge is still on but it's a psychological struggle with some relapses.

Trader-X said...

I take it on a case by case basis - I think entering on the bars you mentioned was valid, as long as you were aware of the risk of entering under the OR high and could monitor the position closely.

For me, today, I had too many open positions. So I passed on the early entries, but could not resist the strong set-up above the OR high.

Stephan said...

Trader-X, just curious how many open positions is too many for you?

Trader-X said...

Stephan, I believe I had around six open at the time...too many for me to closely monitor. If you read me regularly, you know that I like fewer, high-quality set-ups that I can closely monitor. That allows me to have a much higher win rate.

Nothing against those who prefer to take many set-ups. We each have to do what makes us comfortable.

David R. said...

Traded PQ above the Fib extension, hammer. Good for a quick 2%.