Welcome to the Trader-X blog!

> TRADEthemove.com - my thoughts
> meditationSHIFT (formerly "tad")- just say "om"

Monday, January 24, 2011

JCP - 012411

JCP was a textbook gap up with a pullback and setup "beyond the Fibonacci extension". The only problem was that the entry was below a whole number ($32). I took the trade, but watched for resistance at that level and planned for a quick exit if it materialized. It didn't - price cut through $32 and rallied to the $32.50 level, where I closed the position after seeing multiple signs of weakness.

Fibonacci lines were plotted over the previous day's close to the current day's open. The trigger bar is marked (a narrow-range, hammer-type candle that closed green above the FE). My exit level is marked with a horizontal, black slashed line. A nice .50+ gain in under 30 minutes.



Times of Your Life said...

Nice trade Trader X

today I traded NVDA
30 min chart with Fibonacci plotted at the current day 1st bar high to the previous day low

entered at the break of the 2nd bar high and exit at the FE (24.25).

i didn't think NVDA would still go up after cuz the market isn't moving much and with few of my previous entries from other stocks that failed so i quickly take some profit and run hahahahahaha....@.@...

still good, still good...

Anonymous said...

Nice one X. I had this on the watchlist but the 10 minute chart setup was not as compelling. Do you watch multiple timeframes, or just 2 minutes?


bl said...

Nice trade TL. I didn't think anyone traded 30" charts I sometimes use 5 10 15 30 on one page with a WL and scroll thru. What you don't see in one time frame yuou see in another.

Melissa said...

Thank you, X, for sharing all that you have. I have begun to read through the earliest blog entries and have gained a lot of insight (after reading dozens upon dozens of trading books).

I was wondering if I might have your opinion on something...

I made a great trade Friday and a great trade Monday, my only two trades since reading this blog. I had my 10-minute charts all set up and ready to go this morning, but I sort of....panicked. It all seemed to be moving so fast, and I couldn't seem to make sense of anything, so i didn't make any trades at all today. I'm thinking I need to go to 30-minute charts or something for a while until I am more competent/confident.........

Michael said...

Hi Melissa, sounds like you are off to a good start with some trades. Congratulations, but be careful! Mr. Market has a way of taking the gains back.

I wanted to give my thoughts on 30-minute charts, which may conflict with X's advice so take it for what its worth. X talks about the dangers of trading on too fast of a timeframe, which is very true. I think it is equally dangerous trading on too slow of a timeframe. 30-minute charts in my experience don't always give good follow through on signals, as a lot of the move happens within one or two bars. If I were you, I would stick with 10 or 15 as the slow timeframes and 5 as a fast one, when you are ready.

Best of luck.

Melissa said...

Thanks, Michael. I'll try 15-minute charts and see how that goes for a while.

I bought MOTR today at a break of the 3rd bar high. I know it was a "grade B" setup because it was lower than the OR high, but I tried it anyway. I was stopped out for a loss. I guess I should have paid more attention to those bearish 5th and 6th candles.

Here is the chart: