There is some great feedback and analysis from readers in the "comments" of the last post. Since tomorrow is a market holiday, I will try to look at a few of the trades mentioned and do some analysis, and maybe post one or two as well (or, maybe I will enjoy the nice weather and not make it back here until Tue or Wed!).
Here is some reader analysis worth sharing:
Kris C. said...
Chips and Salsa, if I may I would like to comment on your trade vs. X's trade because this is exactly the thing that used to screw me up. First and what I consider the key difference - X's trade gaps up above the previous day's range/outside the previous day's range. Your trade gaps up into the middle of the previous day's range. Avoiding your trade type and taking X's trade type will increase your wins substantially. Second, you are below the 100EMA which means you have overhead resistance. Third, if you follow standard pivot lines, your stock's price is bouncing all around the pivot point which adds to the choppiness and indecision. Finally, your pullback actually penetrates deeper into what X calls the retracement zone. It is not a clean bounce off the top, and technically the upper white line of the retracement zone, the 38.2% retracement, is going to be resistance when price tries to move back up.
Again, I make these comments in a positive spirit. I used to do the exact same things as you, and another commenter pointed out these things to me and my trading drastically improved. I hope my comments help you in kind.
Kris' comments were in response to this question:
Chips and Salsa said...
The trade I took today is eerily similar, but I had a different outcome. I seem to have a knack for picking all of the fake-outs. GMCR, 5-min, PDC to CDO, 5EMA, entry on break above the 6th bar.
Set-up is exactly the same as ZMH in that the trigger bar hovers above the Fib Ext, but rests squarely on the RZ if Fib lines are instead drawn for the low/high of the morning's range.
Entry was at $42.11, just above the whole number. I keep getting stuck in these range-bound drifters or getting stopped out altogether.
Perhaps GMCR's morning range is too wide? It doesn't seem much wider than ZMH's morning range, but perhaps I'm wrong.
If GMCR didn't show up as a candidate for you this morning, then perhaps it's my candidate scanning that is flawed.
Any feedback is much appreciated, and thank you for all the great examples over the recent weeks.
Read all the comments here.
Trading 27-April-2016 (+ $66)
22 hours ago