Welcome to the Trader-X blog!

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

Monday, March 23, 2009

Catching those late day rallies

posted by Tom C.

I am gearing up to make some posts in April when X goes on vacation.

Days like today don't happen often, but when they do I catch the late day moves by looking for a saucer or "cup and handle" pattern. X taught me this pattern years ago, and Trader Jamie makes good use of them too.

I look for a rounded or saucer pattern, with an aggressive entry when price crosses the 50% retracement. The next entry option is the halfway point between the high and 50% retracement (the white dashed lines that X introduced us to earlier this year). Here are two examples with entries marked. I closed half my position at the FE and closed the other half at the end of the day (for VTR almost one and the same).



Tom (not Tom C.) said...

Tom C! I am glad you are here, I love seeing your perspective on trades.

Jerry said...

Nice trades. I like trading the intraday cup and handles on 5-minute charts.

Jamie said...

Nice job Tom,

The C&H patterns were ripping yesterday afternoon. I caught a few from the usual suspects list.

QQQBall said...

PSA = inverted H&S bottom.

Randall said...

X, I notice Tom C's charts have moving averages. Do you still use them?