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Wednesday, January 13, 2010

A few trades

Posted by Tom C.

I wanted to post some charts this morning, but my software is down. JCI was a good "u-turn" setup yesterday. Looking at my trade log, I entered on a break of the 6th bar high. If you plot Fibonacci lines over the opening range of the morning, you will see this setup occurred just above the 50% level of the morning's high to low. JCI provided another great example of price stalling out at a whole number ($30), and if I remember correctly it printed several bars at that level giving you a great signal and plenty of chances to close a profitable position.

I have not had many shorts this week, but noted CSIQ was a great setup; my broker did not have shares to borrow but it is still a good chart to study - similar to one posted in the comments of Friday's post by a reader. Price gapped down and fell the first 30 minutes and then pulled back into resistance before turning back down. I was looking to enter on a break of the 13th bar low, but again my broker did not have shares to borrow.

I will try to post charts when my software is up and running.



Jared said...

Hey Tom,

This might be an odd question, but when you're looking at your watchlist to find a good setup, do you look at the stock before the entry bar finishes forming (i.e. 10:08 EST, 10:19 EST), or after it finishes forming (10:10 EST, 10:20 EST) on a 10 min chart?

And if there are several great setups all lining up at the same time and bar, how do you enter 3-4 of them before they run off?



Tom C. said...

Jared - I only take a setup after the bar completes. Otherwise, you are guessing and working with incomplete information...what it looks like 8 minutes in may not be close to what it is when it completes.

Regarding taking setups, X used to say "I miss more than I take" and that is true with me as well. Unless you are fully automated, you will miss setups. And, my style of trading can't be fully automated so I have to make sure I am taking the best options. The good news is, there is never a lack of setups over any given week!

Anonymous said...

Hi Tom, a question regarding the setup in CSIQ. I notice that it is very close to ORL. would it be a concern to you? Thanks,


Tom C. said...

Song, while there is always a chance at reversal at the ORL (or ORH), I liked the setup because it was the third attempt at that level, and given the overall weakness the odds were in favor that it would break through.