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Monday, February 05, 2007

CTSH - 020507; 30-minute chart

posted by Tom C:

I mentioned CTSH in comments earlier - I entered on a break of the 2nd bar high (the 2nd bar closed above the OR high). I sold at the Fibonacci extension of the previous day's low to the OR high.



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4 comments:

Anonymous said...

Tom,
Can you explain your entry? It is not close to 5EMA.

Pat

Anonymous said...

Pat - as discussed last week in comments, it is all relative.

I don't require it to be as close as X, but I like it to be close. With CTSH, to me, the 5MA was close enough considering the big gap, and price movement (over $5). I was willing to take a chance on it, and I payed close attention as price came even closer 4 bars later and formed the hammer. Had it acted weak around the 5MA at that point, I would have probably exited the position.

I was also watching the 15-min chart as I mentioned in the last post's comments, and price had moved up off the 5MA on the 4th bar.

All of that combined with the close above the OR high made for good risk imo.

Tom C.

ADD Trader said...

Hi Tom,

I made me feel good to check your blog today and discover that we traded the same stock. Of course your entry, exit, and profit were much better than mine, but just knowing that I am on the same page with the pros is comforting.

ADD Trader

http://addtrader.wordpress.com/

Jon said...

I was able to catch the ride in wynn as it touched the 5 ema... nice way to play the lvs gap down.