Welcome to the Trader-X blog!

> TRADEthemove.com - my thoughts
> meditationSHIFT (formerly "tad")- just say "om"

Tuesday, October 14, 2008

HIG - 101408

HIG was on my gap list this morning, and it triggered a setup above the opening range high with "offsetting bars". I entered on a break of the green candle (white arrow) and exited at the Fibonacci extension of the previous day's low to the OR high.

I almost passed on the setup because there was white space between the OR high and the setup, and I prefer the setup occur closer to (actually on) that line. But it turned out to be a good trade and continued to rally after my exit.



_______________

7 comments:

TL said...

Hi Trader-X,

I came across your blog a few months ago. Although you have stopped blogging by the time, your blog is a such an inspiration to my trading. I was so excited when I figured out by chance that you have come back to blogging a few days ago.

I have a question about drawing the fib. lines. If today's OR is within previous day's range, how do you draw the lines? I see you draw from previous day's low to OR high (NQ - 100308), why not vice versa? Or from previous day's high to low? Thanks in advance.

TL

Bill G. said...

I traded HIG too, though I entered on the hammer bar above the OR high a little earlier.

Hey X, whatever happened to Tom C.?

bl said...

Hey X,
Welcome back and I see you're using 5min charts w/o ema's...how can that be. Ah so, you must have internalized all knowledge. 15 and 30 look very good too.

Trader-X said...

tl-I am going to do a post about plotting Fib lines...probably over the weekend.

bill g. - he had a family crisis shortly after he started his own blog, and he just never went back. He is still trading and doing well.

bl - I eliminated MAs...for me, there was not much added benefit. I am trying to get as simple as possible!

Elad said...

Hi Trader X,

Also, if you can please explain how you scan now for good setups since you don't use volume indicator anymore. How did your scan change?

Thanks,

Elad.

Trader-X said...

Elad-

I still use volume to sort the candidates, and only focus on the highest volume gappers. I have never paid attention to volume as far as when to enter/exit a trade...so, I took it off the charts.

But regarding my watchlist and candidates - yes, I still sort by volume and focus on the top of the list.

Prospectus said...

@billG

Tom C has a blog here: http://www.mywittyblogname.blogspot.com/