Trader-X will return soon. Until then, you are stuck with a few more posts from me.
Another trade I like is a setup that forms around the OR high (or low for a short). DRYS is a great example. Price gapped up and remained strong. It bounced around the OR high (the first 30-minutes - see the black line on the first chart) and the 9th and 10th bars stabilized above it, and narrowed in range. The 10th bar was a hammer-type candle, and I entered on a break of it's high (yellow arrow).
For my exit, I plotted my Fibonacci lines over the morning's high (including the 4th bar) to the previous day's low (see the second chart). I sold at the FE.
There were a lot of great "u-turn" setups Friday. A few I traded were PNC, ADBE, and FDX.
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5 comments:
Tom, just wanted to say that I get a lot from your posts. I hope you stick around even when X is back!
Have a good week.
I 2nd what Roger said, I am learning good stuff from you Tom.
I notice you don't use volume either. I just can't see how you guys ignore that indicator.
Good trades.
Thanks for the positive feedback. Warren, volume offers no added value for me, so I don't put it on my charts. If you have a way to make it work for you, then by no means am I telling you not to use it. Use what works for you.
Tom C.,
I certainly appreciate your posts. The variations and extensions of Trader-X concepts are very useful.
You've been great, Tom. Trader-X and his readers are lucky to have you to relief him while he takes a break. Your explanations have been crisp and clear and the charts are as clean as Trader-X's. I absolutely love a chart without the volume indicator :-)
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