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Friday, February 23, 2007

DLLR - 022307; 30-minute chart

posted by Tom C:

I was watching DLLR as it gapped down and printed a hanging man on the 1st bar. The 2nd bar was similar, and the 3rd bar was the narrowest of the morning (NRM) and closed weak. I entered on a break of the 3rd bar low*, and covered at the Fibonacci extension of the previous day's high to the OR low.



*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.

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15 comments:

Anonymous said...

What drove your attention to DLLR as opposed to others? I see they had a sale of stock 5mil shares which is usually negative. How do you look for potential stocks before the open etc? TIA>

Tom C. said...

I don't look for potentital stocks before the open, and I don't look at news/fundamentals so I had no idea about sale of stock. My trading is the same as Trader-X's - based on gaps. Take a look through the blog and you will understadnd.

Gary said...

I traded CTCM off the 4th 15' --.07 cent risk, exit half at Fib ext and half at 21.50 ( round figure) , even though Fib ext bar had no room for concern but I didnt want to be the last man standing avg gain of .76 cents or just over 10R

Other trade was RTI-15' bar-got out too soon in that one could ve been a much bigger winner.

estocastica said...

This is a setup I need to get better at identifying. For some reason, this just wasn't on my radar, even though it was on my watchlist. Great job and have a nice weekend.

mentalic said...

Hey Gary,

What made you look at CTCM...it was a great trade!! I completely missed it...what did you use to get this on your radar?

RTI was a good one too!! though I missed that as well!

Mentalic

Gary said...

Mentallic,

I just use a simple scan but most of my stocks are Nasdaq--sometimes NYSE but I am leaning more towards Naz stocks, --few criteria for scan are vol over 300k avg 6 mo, price over 10, naz stock market and gap over 0.5%

Other than that I do look for stocks with less than a .50% risk on 15 min and about .50 to .80% for 30 min--this is by far no strict line just that if I find stocks like this then I know I got a good chance for success. Also look for regular things like close to opening range high good volume etc etc regular Trader X stuff. CTCM was only a 7 cent risk and it had round number support. That's what made it jump out and it was narrowest inside range bar close to high of opening range.

Joe said...

Hi Tom, what are the exact numbers for every level of fibonacci lvl you and TraderX use ?

Anonymous said...

NICE on CTCM gary, could you guys look at UEIC and say if it would fit the entry criteria at any point in the day friday? Do you guys use automated alerts that pop up when a stock starts fitting that criteria or is your scanning all manual? Thanks.

Anonymous said...

Trader X, Tom c., Gary etc... We could set up a free Trader chat room via yahoo messenger or AOL messenger, sort of a Trader X fan club and trading chat room open Mon-Friday. It would be interesting and educational. I could set it up easy, we just need screen names for Trader X, Tom c., Gary an anyone else on AOL or yahoo messenger. You guys can choose who to accept into the room. Getting a Screen name takes bout 2 min if you have AOL or messenger software downloaded. Let me know what you guys think.. email: jaw2321@yahoo.com

Anonymous said...

Joe, see this post.

TJ

Green Girl said...

I am fascinated by finances and hope to learn much more on your blog! Please excuse my stupid questions in advance!

gary said...

seems like a good idea--yahoo messenger would be fine but not AOL for heavens sake LOL

Anonymous said...

Ok Gary and ANYONE else who wants to join the chat room; send and email to jaw2321@yahoo.com with your yahoo messenger screen name or add this name: jaw2321 to your messenger contacts list. I will set up a chat confrence on monday morning before the market open. After everyone gets the hang of it we can change things up.

mentalic said...

Thanks Gary.

Mentalic

Trader-X said...

I have to decline the invite - I am very regimented in my trading routine. But best of luck, and feel free to post comments here if you need to communicate anything with one another.

I will say don't let a chat distract you from trading...that can easily happen so be careful.