Welcome to the Trader-X blog!

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

Sunday, January 30, 2011

TSCO - 012711

A submission from Eric:

"Trader-X, for your consideration:

TSCO, 5-minute chart, 8 and 100 EMA, Fibonacci lines plotted over the previous day's close to the current day's open.

I entered on a break of the 8th bar's high. Price gapped and ran, and then pulled back to test the Fibonacci extension as support. Also providing support was the 8EMA. I entered at $51.57 and closed the position at $53.00. I think you would give this a B or a C because it didn't bounce on the Fibonacci extension. It broke, but then made what you call an "offsetting bar" (bars 7 and 8) and rallied from there.

Thanks for the great site. Feel free to post my trade."

Nice trade Eric. I do prefer price not break the FE when it pulls back, but the offsetting bars with support from a rising 8EMA was a compelling signal. I didn't trade TSCO, but had I seen the setup I think I would have taken it.

Here is Eric's chart with the trigger bar and exit marked:



Anonymous said...

Nice trade Eric. I actually traded TSCO too but I bailed out .50 before you did. I didn't think it was going to make it to 53, but it got there at the end of the day.


Javier said...

Good trade Eric.
On that day I was going to trade CCL on the short side on 5" chart. Bar Nº 12 was an Inverted Hammer with 8 ema declining as resistance but I did not pulled the trigger because bar Nº 9 and 10º were Narrow Range and I wrongly believed that a reversal to upside was coming and because I prefer stocks going up, however It went to the 200% Fib Extension.
Looking back at Bar Nº 12, it was also testing the 30" Opening Range as resistance as well.

u.s said...

hello trader-x
27th of January , i was watching QCOM on the 15 min. chart,5 EMA, Fibonacci lines plotted over the previous day's close to the current day's open.
as a rookie trader, i'm trying to implement some of your trading methods. price went down a little , then , on the 4th bar , it
touched the 5EMA nicely , and the bar was closed green .i entered at 54.06$ , above the break of the 4th bar's high , without any support from the Fibonnaci lines. watching it closely , price never closed under the 5 EMA , until failing to break the "whole number" at 55 (also collides nicely with the Fib. extension).i closed the position on the 16th bar, at 54.94$
though it was a nice trade ,i'm not sure if it wasn't just a "beginer's luck"...
thanks for your excellent blog , i'm learning a lot from it, hopping to improve my skills.

Times of Your Life said...

Nice trade for Eric and everyone

bl said...

Nice trade Eric and Th was an up day. On Fr the gap ups on my list faded after the 3-5" bar along with the market. If one traded the "pullback" =stopped out. One could trade long on a 2" chart at the open but gotta be quick. Point being here is I'm seeing that market direction is important. Fade the longs or short the gap downs. Insight welcome.

Anonymous said...

What are some examples of failed setups bl?


bl said...

Fri fades: EQIX DOV INFA CYT RAX ARBA VSEA SOHU FNSR 5 min charts fade after 30 min or if lucky long 2 min charts from the open

bl said...

edit-that was Most Pts Up 10 min into the open Friday WL

Anonymous said...

Thanks bl. I didn't see any long setups in the bunch, looking at 5-minute charts. They gapped up but I didn't see any orderly pullbacks above the 50% mark of the morning's range that gave a candle signal. That is what I like about the combo of gaps, candles, fibs, and moving averages, if they don't line up then I pass.