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Saturday, January 17, 2009

Weekend roundup

A chart of the "h"

Trader Jamie made a post called "Shorting the h"...to all you Artie Lange fans, it was NOT about heroin.

The "h" pattern is actually in my arsenal of simplified setups, and I will elaborate on it more when I resume posting trades in a few weeks. But I wanted to post a trade from yesterday to give you guys something to look at over the long weekend. I traded ABX yesterday, and it is a variation of Jamie's setup. It does not meet his specific criteria (and is a different timeframe), but the general pattern is similar and you can clearly see the "h".

The first chart is naked, the second chart shows Fibonacci lines plotted over the morning's high to low and the pullback to the 50% retracement. I entered a short on a break of the hanging-man candle and covered at the Fibonacci extension - which, as you can see, marked the exact bottom (magic!).

Another disturbing photo

A few days ago I posted a photo that [most likely] was Trader Jamie or Dinosaur Trader. Today I post another photo for your consideration - depending on who you thought the previous photo was, this photo is undoubtedly the other.

Looking back at the past eight years

Finally - I thought this timeline was a great recap of events over the past eight years. It is amazing to see the rise and fall of the markets as well as other events I forgot happened (Google just went public in 2004?):

What the Hell Just Happened? A Timeline of the Bush Years.



anarco said...

Beautiful trade on ABX!
MS also printed a nice h pattern on the 5min chart.

TL said...

If you draw fib lines from PDL to ORH, would you go long on the 1155 bar, which is a green hammer formed exactly on the 50% retracement level? Thanks~


QQQBall said...

the move to the LOD (so far) at 8:15 was an approximate .382 retrace of range from PDL to ORH.

question: what would have made you pass the long trade? i had a similar trade on EXM, which i got out of BE when it didnt seem to have any "momo"... unfortunately, i did not reload at the .618 area later in the trading day?


Anonymous said...

TL, not sure about X but I would have skipped it because of the previous long red bar. It made the hammer weak because it didn't penetrate the red bar's real body.

Also, I like the hammer's tail to penetrate the support and then rally back, rather than rest on top of it.

My .02.


Anonymous said...

TL, 8:15? The markets don't open till 9:30EST!!!


Anonymous said...

I meant QQQ, not TL on that last comment!


Trader-X said...

Read the comment I left on Anarco's blog a few weeks back about a hammer after a long red bar.


Trader-X said...

The link above:

Comment on Anarco's blog

Anonymous said...

Hi, when analysing a trade like the h-pattern shown, is there any criteia that determines that you plot your fibs from the mornings high and low points as shown, rather than the ORH and the PDL?


Trader-X said...

Mark - it is all about what you are comfortable with and picking a method and sticking to it. You can find setups either way...where people get in trouble is switching back and forth. Part of my simplification process is a switch to focusing more on intraday (specifically morning) ranges. Not that using the previous day high/low does not work - it does. It usually provides for bigger moves, but they take longer to unfold.

QQQBall said...

thank you.... that guy with the helmet is scarier & scarier! ;)