Posted by Tom C.
I am going to try and post a few daytrades every week, and a few longer-term trades every month. We'll see how long I keep it up! I am going to be on vacation most of February, so I hope to start strong in January and pick it back up in March.
My daytrades are somewhat boring, and I usually trade the same handful of setups. I occasionally tweak my MAs and some support/resistance lines (for instance, marking the halfway point between the low and retracement zone (RZ), the high and the RZ, the high and the Fibonacci extension (FE)). I usually trade 10 and 5-minute charts, but sometimes look at and experiment with other timeframes. But for the most part, the setups are consistent.
I traded CERN long today - the Fibonacci lines are plotted over the previous day's low (PDL) to the opening range high (ORH). It gapped up and pulled back to form a version of the "u-turn" setup (though sloppy). I actually entered as price found support at the 8EMA and moved back up through the ORH. My entry was on a break of the 15th bar's high, though there was some good entry points prior to that. Since price had already closed above the ORH and pulled back below it, I was bullish on the move back above and felt confident it would run to the FE. Price rallied from my entry and hit the FE a few hours later. Because price action was strong, I actually held for $88.00 and closed the position at that level (see my previous post about watching the "whole dollar" levels). CERN continued to rally, but I was happy with my piece of the action.
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