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Tuesday, May 08, 2007

Tuesday's charts

UTHR was a classic "bread and butter" set-up; I don't take these as frequently as I did in past years because the win rate has dropped. But sometimes I cannot pass them up.

UTHR gapped up and fell back to the retracement zone. It printed a textbook hammer on the third bar, and rallied from that point to hit the Fibonacci extension of the previous day's low to the OR high. I sold 1/2 after $1 gain, and the remaining 1/2 when price hit the aforementioned level.



Ray sent me the following question about UHCO:
"X, is the 12th bar on UHCO 15-minute chart an example of what you are talking about with price crossing a key level and the bar closing at its high?"

Yes - the only reason I passed on the UHCO trade was because it had already rallied almost halfway to the Fibonacci extension; I prefer to have a little more room to run. But it is a good example and the set-up worked perfectly...and then some, as it continued to run beyond the Fibonacci extension.





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7 comments:

Investor Jerry said...

This blog rock!!!

After studying your trade style and applied it to my pattern trade, I gain most of my losses back.

I will pratice 2 more months and slowly try to be more active in daytrade.

Before that, I like to switch my sharebuiler account to another broker.

I understand daytrader require many good tools, can any here give me some suggestions on:

1) Which broker offer software that create best looking chart with backfill fuction?

2) Who have the best commission price and service?

3) If for tax purpose, you file as Corp S, must I have to change my individual broker account to company?

Thank you very much.

Anonymous said...

X,
How do you calculate the Fibonacci extension. My Etrade Power Trade does not seem to give that indicator .

Your blog is the best I have seen on day trading.

bl said...

Noticed some 15 min hammers: uthr3/15 fslr4/15 stld4/15 uhco13/15 qqqq4/15

Anonymous said...

Anon, click "WELCOME, KEY POSTS" at the top of the page and go down to the bottom where it says "Fibonacci Calculations".

Tom C.

estocastica said...

Thanks X.

greytrader said...

Hey Anon,

Etrade Pro does have Fib retracement. It is under Drawing tools on a chart.

It does not give the 138% line but you can subtract the 61.8% value from the 100% value and add it to the 100% value for your target.

Richard said...

Happy Bday Esto!