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Tuesday, March 31, 2009

AMZN - 033109

Posted by Tom C.

I will be making a few posts while Trader-X is on vacation. A few things about my trading:

1.) I make trades on 15, 10, and 5-minute charts.
2.) I still use Moving Averages as guides. I plot the 8, 13, and 34EMA.

AMZN was one of my better trades today. I love this formation - it is my "bread and butter" to borrow an old X term. It gapped up and then sold off and bottomed. About Noon it took out the 50% retracement of the morning's high to low, and then consolidated. You might look at the 4-5 bar consolidation and see a triangle.

My trigger bar is marked with a yellow arrow. Note how the 8 period EMA (white line) moves up and "pushes" price higher; all three MAs were moving up at a nice angle.

My target was the Fibonacci Extension and it was hit 8 bars later.



Luis Miguel said...

First of all, sorry for my english (I'm a spanish reader). Second: great blog! thank you for sharing so much with all of us. I'm a newbie trying to learn from all the content published here: I have tried to identify the patterns you show in the blog in the market today (Thursday 04/02). I have run the IB scan to find some gappers and my doubt is: the pattern showed by MT and TRW today is tradable following your setups?... I mean: 3 up bars (10 min) without retracement and then the 4th bar breaking up the OR. What makes me doubt is the lack of retracement of the 3 bars and the 4th bar breaking so quickly the OR high...Thank you so much in advance for your help!. Luis Miguel

Luis Miguel said...

I think I'm able to answer myself after reviewing some patterns like these ones that appear in the blog: I believe the pattern would be the one that you call "Push Trough" and it has to be traded long at the high of the OR...