This was a higher risk setup, but I liked the movement off the open. I rarely enter before the third bar is complete, but this is the exception. Price gapped above the previous day's high and the first bar printed a lower tail and although it closed red, it was above the halfway point of its range. The second bar was strong, opening at the low and closing at the high - and taking out the high of the first bar (and the high of the morning).
I entered on a break of the 2nd bar's high (again, a higher risk setup), and closed the position when it hit $5 thinking that area (a whole number) would provide resistance (and, it was just below the FE as shown). A great trade and a quick profit.
I have not found the time to respond to some of the previous comments. I apologize, but the blog is about 10th on my "todo" list right now. I will try to post some additional charts and answer comments later this week.
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10 comments:
That trade is a joke. Pure gambling if you even really took the trade.
Evan
Evan, then why are you even reading this blog?
This is why I am not motivated to take time out of my day to post...and why it is low on my "todo" list.
So many anonymous people on the Internet that get their jollies from spreading their negativity.
Sorry if I came off as a jerk but take it from someone who has been around if you continue to compress timeframes and trade on two 10 minute bars the volatility in your equity curve is gonna skyrocket and you will lose all of your hair like I did.
Evan
Hmmm. X and Tom C. have been posting trades on this blog since 2006, and I know that X has been trading for at least 10 years prior to that. So I would say they have "been around".
This trade seems to be the same basic strategy as the other trades posted over the previous three years. Tom C. pointed out that it was higher risk twice because of an early entry, so really Evan you did come off like a jerk.
Tom C. - I appreciate your posts. Keep up the good work!
Tom C., you should not even publish a comment like that (from Evan).
I appreciate your posts and your trades, and I know more people appreciate your posts than don't. But you can't avoid people who are failures and wish to push their negativity on others. It is a fact of life which is - as you pointed out - bolstered by the anonymity of the Internet.
I know many people get a lot from your charts. Everyone else should just move on to one of the other 100,000 blogs that exist in cyberspace.
I think that trade makes a lot of sense. I want to add that the 1st bar tested PDH and bounced with a long tail. If you combine the first 2 bars, they formed a perfect green hammer. Very bullish, and it exploded just as the pattern hinted.
Tom C,
Sorry to hear that blogging is ranked low in your priority. But I do appreciate your effort and learn a lot from you and Trader-X.
Seriously. It's a great trade: The price action is very bullish, the risk is clearly defined, and the $5-mark is a nice target.
Tom C. mentions the higher risk two times. Volatility? I'm pretty positive this isn't an "everyday" trade and I don't see anyone compressing timeframes around here.
I learned something from this post, so thanks for sharing Tom C.!
Nice trade Tom C. Ignore the negative people and keep up the informative posts.
I agree, solid trade. I am always learning on this blog. Thanks much.
John
i am new to this blog, i am confusing with the ORH/ORL.
should we refer to the first 10 minutes or 30 minutes?
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