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Monday, March 12, 2007

CMX - 031207; 15-minute chart

posted by Tom C:

This was a higher-risk set-up with an entry above the OR low.

I watched the 5th and 6th bars form "hanging-man" type candles, and entered on a break of the sixth bar's low. On the positive side, the sixth bar closed below the 50% line of the 1st and 2nd bar's range. And the declining 5MA was providing overhead resistance.

I covered the short three bars later when price hit the Fibonacci extension of the previous day's high to the OR low (note the reversal at exactly that point - magic as X would say).



I watched FMT as it broke the OR low and pulled back to test that level (support is now resistance). The 10th bar formed a "hanging-man" type candle and closed below the declining 5MA. However, I could not get any shares to short.

It is still a good chart to study, though (again, as X would say).



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11 comments:

lbcando said...

I shorted FMT on break of 2nd bar

Gary said...

DRIV was ncie today--after gapping down couldnt close(15') above fridays high--couldve shorted on second attempt to break that with max .5% stop then it went to test the OR low--entered short on break of 8th 15' bar 27 cents risk--also testing OR low, covered end of day--in hidsight shouldve added on that sideways move and then another push downward--hesistated too long

Gabriel said...

Hi, I was trying to be a man of principles today (above ORH, below ORL, etc.). Still I saw AMGN (8th 30min, 16 15min). I almost took the trade but when asked "are you going long on Gap down?" I said, not today. Question: is this a trade you would have taken?
Thanks, Gabriel.

Anonymous said...

Today I had 2 trades. BZH which worked (Shorted at $34.31 and got stopped at $34.08).

But one trade which seemed like a perfect setup was a short on CHK. I entered short on the 5th candle low at $29.50(15 min chart).

I think it was good entry I feel it just failed because the energy sector maybe rallied.

Was my entry correct and it just didn't work? It was a big gap down, Broke the Opening Range low and on a declining 5ema.

Please let me know if my entry was correct as I am still learning this strategy.

John said...

Hi Guys,

Gary - nice trade on DRIV. Keep it up...I'm living vicariously through you. :)

Here's a question: It seems to me like I'm pretty much stuck with the stocks I find first thing in the morning, but I seldom have the same stocks on my list as many of you are trading.

Is there some way to find more stocks throughout the day? I run a Prophet scan at about 10:30, but that never seems to turn up very much once I sort the list by volume.

Thanks,
John

Terry said...

Anon - I don't see the CHK setup at all. First, the previous bar's low was not broken. Second, what was the signal? Third, the first bar was really wide range.

But again, I don't see how a trade could have been entered as price was not taking out a previous bar's low.

Anonymous said...

Terry

I jumped on immediately when .50 became the bid because it was thin and got short at .51. Thinking that it would fly through .50

Maybe that was my fault I jumped in early anticipating a break?

I guess in hindsight it didn't break .50 completely though it did break it and become the ask for a minute or two.

I see what your saying. Also about the Wide Range Bar is there a typical price range or % that you would think is too big for a stock? I'd like to know when a wide range bar is too big that it is a warning signal.

MykL FL said...

To Gabriel:
Hi,

I did go long on the Amgen retracement on a break of the 11th bar which had crossed above both the ORL and an upsloping 5EMA on the 15m chart. I exited near the 62% Fib line during the 3:30 pd. In hindsight, a break of the hammer-like NR 10th bar which was kissing the 5EMA might have been timelier if a bit more risky.

After several years of sorting through triangles, cups/handles, bottoming RSIs,PSARs and CCIs,Darvis Boxes and the like ad nauseum, X's brilliantly constructed streamlined approach seems pretty damn kewl and rewarding. This last month has been a real eye-opener!

ThankX X ..and certainly Tom also for your generosity way beyond any reasonable expectation.

cheezyfool said...

i've noticed that you've chosen more short positions than long the past few days? any reason?

anyway. i missed a of trades today, but i managed to get long PICO. i got out too early, and didnt manage to catch the big break up sadly.

QQQBall said...

cheezyfool,

excellent trade. if you switch to the daily chart, you can see you were filling a big gap there, whcih might have been a nice target to shoot for with partials. very nice trade.

i think you could make a good living, particularly if you entered on the NRB on a PB to support...

Gary said...

John

Thanks first of all--just so you know I still make mistakes but I am too shy to post em here :)

As far as your question about the list goes--here's my 2 cents

I used to have a load of services--telechart, cybertrader scans, hi/low indicator etc but now I only concentrate on my cybertrader scan--I have made a simple query and I use that--As the day goes on only the stocks meeting the criteria are left in it and 90% of time I will see most stocks mentioned here in that query somewhere or the other( which I obviously miss-other than a couple that I take)

I would definitely suggest taking a look at cybertraders tools esp if you are a day trader. You can actually plug in your morning scan list into an indicator called hi/low indicator and when your stocks start making new highs or lows for day you can see them in there--neat tool to have so you dont miss anything.

One thing I like about cybertrader is the simplicity--I dont have to pay for any charting or monitoring service or any other scanning service--its all in one reliable package and I ve learnt to take good advantage and concentrate on only one thing instead of (like I used to) many programs being in and out of em.