I almost passed on LNC (as a "u-turn"-type setup), because I wanted the trigger bar to close above the low of the OR, but it closed at the low instead ($6.61 vs. $6.62).
But I like the bottoming pattern and the move up off the 8 and 13EMAs, so I bought on a break of the trigger bar (yellow arrow). I exited the trade at the FE (Fibonacci lines plotted over the first 30-minutes).
I watched the 50% retracement for a reversal, but price action was bullish as it never closed below the 13EMA. Overall it was a great trade, returning around 8% (and as X says, a high volume stock that was easy to enter and exit).
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6 comments:
I was following LNC today and I missed the trade (I'm just beginning to use your strategies). My question: when you buy so low in the OR, do you always target the FE as a sell point or sometimes should be better targeting the OR High?...Which ones would be the criteria to do one thing or the other?. Tom, did you trailed your stops in this trade?. Thank you very much.
Luis Miguel
Luis, the FE is the best case scenario. But I watch how price acts around the 50% (I mentioned that in the post) - if it has trouble getting through, it is probably going to reverse or at best make it only to the high.
I do trail my stops. Had LNC failed at the 50% level, I would have closed the position for a small gain.
Nice trade. Had some positive news too. Those pesky insurance co's!
nice trade. that is a massive BO bar.
Hi Tom,
Do you drill down to the 5 or 1 minute chart to see price action, or do you just let the candle form on the chart you are looking at? Thanks
hector
Hector, no I don't drill down. I did in the past, but it takes too much time and effort. That is just me though...if it works for you, I am not negative on the strategy.
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