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Monday, March 05, 2007

LEND - 030507; 15-minute chart

LEND was my trade of the day.



1.) What did I see?
A gap down and rally up to a declining 5MA. Price reverses at that point (the 5MA) and falls back to and through the opening range (OR) low.
2.) What is the entry?
A break of the tenth bar low.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's high to the OR low. It was hit six bars later.

Set-up grade = "B+"; the trigger bar (tenth bar) was not really a definable candle pattern, but I liked it as it closed just below the OR low and was a weak bar.


I could not find shares to short in NEW, but it is a great chart to study. I was trying to short it on a break of the thirteenth bar low. It would have been ~20% gain!



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18 comments:

greytrader said...

Nice, I was staring at LEND and did not pull the trigger. No trades for me today.

I was wondering how often you do not find any trade on a normal day (no technical problems, vet emergency etc... :-) )

I know you average about 4 to 8 trades a day.

Anonymous said...

I have been following your blog for some time now and have found it extremely helpful. I have recently been trying to make a go of it using some of the techniques described on your blog.

I too saw Lend today. What a nice trade. I was wondering if you noticed NFI. I was thinking it would be a nice short on a break of the 9th. or 13th. bars. was wondering if you might comment on this trade if you have the time.

Again thank you for sharing.

Alien

Trader-X said...

grey, I find something everyday.

alien, NFI was nice on the thirteenth bar. In fact, it was a nicer set-up than my LEND trade. Close below the OR low, the 5MA pushing it down, narrow-range bar...

Gary said...

I took the 7th bar on LEND, BIDU and RIMM shorts on tweezer looking tops with stops at previous morning highs--worked well. The markets seldom do what you expect em to do--I thought RIMM would be a bigger winner ( options news) but what do I know

Gary said...

Grey

JMHO if you dont find any entries then dont trade--why lose money instead of not making any money. I am just now trying 9 charts on one monitor. Two monitors 18 charts--charts are more to give a visual to see my set ups approach 5 EMA nothing more than that or sometimes an interesting set up--if you are following 18 stocks visually you can always narrow down to ones u want to follow now.. I Just started using this many charts --will see if it improves my trading.

Gary said...

I took the 7th bar on LEND, BIDU and RIMM shorts on tweezer looking tops with stops at previous morning highs--worked well. The markets seldom do what you expect em to do--I thought RIMM would be a bigger winner ( options news) but what do I know.

Taking liberty here on NFI... 9th bar would be your entry and a good set up it is--below OR only thing is its a $5 stock. Nevertheless, It wouldve worked out well.

J said...

It appears you may still have some technical issues.

I compared my LEND 15M chart to yours and looks very different. I double checked it against Quote.com site too and my data matched Quote.com.

Who knows who's data is correct. Bottom line is you made a successful trade from it.

Alien said...

Trader-X,

Appreciate the feedback.

Trader-X said...

What issues J? I looked at three sources and they all look the same...the only issue on my chart is the lower tail on the third bar (which I dismissed, and had no impact on trade decision).

But, everything else looks the same. Here is the chart from BigCharts.

greytrader said...

LEND chart identical to yours on TeleChart Platinum.

R.J. said...

My LEND chart looks like X's.

Gary said...

LEND chart from cybertrader is same as X's--but at same time--all I can say is WOW to volatility in some stocks these days. Never seen quite like it. Hopefully it will die down in next few weeks and we wont see those long tails.

J said...

My mistake.

I was looking at the chart you posted thinking it was the chart for LEND.

Trader-X said...

j, the chart I posted was a chart for LEND.

J said...

I was looking at the NEW chart below the LEND chart you posted thinking I was still looking at the LEND chart.

Good thing I don't do that while trading........I would be in serious trouble.

bl said...

ACAS- missed 4 bar 15 min hammer break.

Trader-X said...

Got it...forgot I posted the NEW chart.

J said...

Only caught 3 today. But was worth hanging around for.

TEVA- 15M/13B break Hi - Exited 119.1 FIB
WFR- 15M/7B break Hi - Exited @ break LO of 14B
GOOG- 30M/8B break Hi - Exited Hi's of 2/28

Maybe we can get back to a little more normal market gap open action instead of digging through the rubble every morning after huge morning gaps in the SPY etc.