TELK was similar to my TRMA trade yesterday in that it had a few red flags - a long upper tail on the 1st bar (somewhat bearish), and the entry was below the OR high.
But, I liked bars 6 and 7 as they resembled the "offsetting bars" that X has discussed in the past, and price found solid support from the rising 5MA.
I entered on a break of the 7th bar high*, and closed the position during the 11th bar (the long upper tail on the 10th bar spooked me). It does not look like a trade that set any records, but it was a low priced stock with good volume (easy to take a decent sized position), and it returned over 4%.
*as with any entry below/above a previous high/low (in the case of my charts, the opening range (OR) high/low), you need to watch for resistance/support as price approaches those levels. If it stalls, you want to exit. If it breaks through, the odds are good you will have a move to the corresponding Fibonacci extension.
_______________
Tags:
trader-x, stocks, fibonacci, trading, telk
1 comment:
I was in VOL today, and I mention this only because it was beyond the Fib extension. Hopefully the technical analysis was correct. A break of the 10th bar in the 15min chart was my entry after the action tried to break through the Fib extension and had failed. The 5EMA was acting as resistance. The following few bars gave probably additional (or better) entry points. Next question was where to exit. I used the concepts in the blog (thanks again)and draw another Fib extension using the same size, what led to 57.34 approx. The 18th bar was at that level and a very narrow bar with the 5EMA on top of it, so I took it as a "go" and decided to wait. Of course I left before the end, but 2.40 per share was so good (as X says: you never go broke taking a profit). Sorry for the lengthy comment. If the analysis was correct (Tom make sure you destroy this comment if not!)and being my second day of trading, the message I wanted to pass to all the new people I´ve seen appearing in the blog is that I became a believer, just study X, Tom C. and the other contributors. Thanks.
Post a Comment