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Tuesday, January 26, 2010

BJS - 012610

Posted by Tom C.

I am getting ready for vacation in February...I will be gone most of the month on 2 separate trips. I will try to finish this week off with a few posts (edit - didn't happen, sorry!), and then hopefully resume in March.

I am posting the chart of BJS because it was a classic setup, albeit slightly higher risk as the entry was below the opening range high (ORH). It also drives home the point I have been making since 2009 - watch those whole numbers. BJS reversed at $22, which was just above the FE.



edit - I entered on a break of the 4th bar's high, and sold just under $22 after price broke through the FE.

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12 comments:

Shalev said...

Hi Tom,
I am day trading classic 15 min' bars patterns usually on stocks who do a full gap either up or down or trading outside of the previous day range.

Close enough to what you are doing, yet I can't really understand why did you enter on the break of the 4th bar high?

The volume is up, but I cant figure out what kind of pattern or setup is this?

Thank you for sharing this with all of us online traders, it is well appreciated.

Shalev Y

Tom C. said...

Shalev - if you look through the blog, you will find many similar setups with detailed explanation. In a nutshell, a gap up and strong first two bars. The 3rd bar was a shallow pullback that didn't retrace past the 50% level of the morning's range (bullish). The 4th bar resumed the uptrend - it was strong, and an offsetting bar (to the previous down bar). The entry carried a little more risk as it was below the ORH, but the entire action over the first four bars was very bullish.

Tyler said...

Tom,

Nice trade! I had that on my WL, but thought the trigger bar was a little wide for me, so I passed. I am glad to see you made it work.

Also, I was thinking you would trade EMC on a U-Turn type trade. I didn't see a good trigger though.

Tyler
Am I Bald?

Tyler said...

Tom,

I meant to ask you another question in my last comment. What percentage of your trades are taken in the morning? I sometimes wonder if it is worth it to sit in front of the computer all afternoon, since I rarely have any, or any successful trades that late.

Tyler

Tom C. said...

Tyler, I agree that the entry was somewhat wide-range, but in my mind it was still bullish as it was offsetting of the previous down bar.

I didn't get in EMC - although it was a nice mover, I don't think I could have spotted an entry for my style either.

Regarding trades - I would say (at least) 80% are triggered in the first 90 minutes. So my focus is very much on the early morning.

Anonymous said...

Do you scale out of your trades or go all in/ all out?

QQQBall said...

DV was a monster all day. Very little resistance to the left on teh daily chart

QQQBall said...

DV was a monsta all day...

Thanks QQQBall

PRD trader said...

Hi tom,do u use pending or market order?ty

Jason said...

Tom,

What brokerage firm do you use with your Real Tick software and how much is the Real Tick software for you?

Shalev said...

Hi Tom,
Thank you for the fast replay on my question, I am now digging through out the blog looking for this setup and learning from it.

Another question, I have came across a post from Dec-2005 saying I can email traderX in order to get the Fibonacci lines Excel spreadsheet calculator, is this still possible?

If so I would like to have it and will email my request.

Thank you,
Have a green day.

Shalev Y

Tom C. said...

Anon - all in, no scaling.

PRD - I usually use market orders. You need to monitor though, and if you can't I recommend limit.

Jason - terranovatrading.com, and it is free because of the volume of trades but if you don't hit the numbers to get the fee waived, I think it is just under $300.