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Thursday, December 14, 2006

WOR - 121406; 30-minute chart

1.) What did I see?
A gap up and wide range first bar that left a small upper tail. The second bar narrowed in range, "filled in" the first bar's upper tail, and stayed in the top portion of the first bar's body. The third bar formed a "hammer-type" candle that closed above the opening range (OR) high. It was also an inside bar, and the narrowest of the morning (NRM).
2.) What is the entry?
A break of the third 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 on the next bar.

Set-up grade = B+; the only issue I had was that the 5MA was a little far away from the third bar...but, I liked the slope and it was in [somewhat] close proximity.

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estocastica said...

Really nice trade. I passed on this entry because it looked somewhat exhausted on the 15 min chart. However, looking at it again, it was setting up just above the 1.62 Fib. Regardless, I often struggle with treating the 15 and 30 charts as independent entities. Do you consider the 15-min chart's price action when entering a 30-min setup? How about vice versa, i.e., do you allow the 30 min chart influence your 15-min trades?

Trader-X said...

Actually - in retrospect - that first bar was on the verge of being too wide for me. But it was not that extended from a steep, rising 5MA so I took on a little more risk...I probably need to adjust my grade to B-, though.

As far as 15 and 30 - I look at both independently, and don't let the 15 influence the 30, or vice versa. To me it is like looking at two different stocks, even though it is the same one...

I know plenty of people who trade multiple timeframes and move up and down looking for S/R, etc...and I am sure it works for them. But my mind cannot allow me to get that complicated.

QQQBall said...

that's a slick little trade there. good thinking.

estocastica said...

Good point regarding the steep, rising 5MA. I'm really happy to hear that you are successful treating the 15 and 30's independently -- my mind has trouble handling it as well!

Mr.Doji said...

Could have been played both ways.
I shorted it and the trade worked
fairly well also.
My chart of the trade is at http://zen-trader.blogspot.com

estocastica said...

zentrader: Nice trade and cool blog.

Richard said...

I shorted BDK between 12:30-1:00 today (Friday) on the pullback. Got $1 out of it.

Also, picked up The TAD principle. It was a good read, thanks for mentioning it and the $5.

Katie said...

Good trade Richard. So was TAD worth the money? Did it change your life?

Richard said...

lol Katie. Not yet, it has only been a day. But it is good stuff.

But like anything else it is up to you to actually USE the tools.

Trader-X said...

Well put Richard - re: The T.A.D. Principle. It is up to all of us to apply the tools...just like the old adage, "you can lead a horse to water but you can't make him drink"...

No posting this weekend. I will get back to it tomorrow evening. Go make some good trades Monday!

Mike said...

My failed trade on Friday was TLB, I lost 8 cents. (Here is my chart, http://tinyurl.com/yzqtvr) What I saw was a retrace to the 50% fib, where the third candle put in a hammer. The fourth candle was not a hammer, but had a much longer lower wick than upper wick. I went long during the fifth candle break of the fourth candle high, which was also a move above the 5 EMA. My initial stop was just below the low of the fifth candle, but I bailed at 25.93 during the 9th candle after the 8th candle printed a shooting star. As Bear Bryant once said, You can learn a lot from loosing. But it only takes one loss to learn it all,” So help me learn it all from this loss, lol. Was TLB a mediocre set-up? If so why? TIA, Mike