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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).





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5 comments:

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?