I hope everyone got a great start to the new week. I am still dealing with some family issues, but I wanted to put up a new post with a few charts from the readers. I can't stress how productive and beneficial the reader comments have become - thank you everyone for participating. There is a lot of great talk on setups and strategy, and if you aren't reading you need to go look at the various discussions across 70+ comments in the last several posts.
Here are a few select charts and comments:
"I'm loving this site and the comments, I don't think I've ever learned so much. In my quest to be patient I waited until today to pull the trigger and traded MRO. 5-minute chart, bought it on a break of the 10:40 bar, sold at the fibonacci extension. I think this was a classic setup. Any feedback?
Thank you so much Trader-X and others who contribute."
"Hi Grove. I don't pay attention to the overall market direction. But, don't confuse that with not looking at the price action of the stock you are trading, and what it has been doing prior to you deciding to enter. That is what I learned from this site years ago. X used to go into a lot of detail about how he took fewer trades so he could really analyze each one, and I have found it is critical to know what is happening in the context of a trade you are about to make. There is a big difference between entering a pullback after a gap up and strong move, as opposed to entering a pullback after a move up following a weak open and weakness after the open (the later is has a lot of resistance it has to get through, no matter how nice the setup may look).
Generally speaking, I go long on strong issues and go short on weak issues (I am looking to buy on a good signal if a stock gaps up and is strong, and short on a good signal if the stock gaps down and is weak). I don't go contra much.
FLR is a good example today. I made almost $2 entering on a break of the 8th bar (5-minute)."
"FLR was a good trade Michael, I took that one too. I also took SAPE off a break of the 3rd bar. A bit riskier, but still a high probability and a very quick 2%+."
I also traded FLR after the 3rd bar (green hammer)on the 15 minute chart. The stock formed a hammer at the 50% retracement of the opening range. I bailed after it could not hold the ORH. I was curious as to where you exited this stock and why?"
"t-money, I exited on a break of the 24th bar's low (5-minute chart, time-wise that is the 11:25EST bar). Reason was it was a high tail print, and I figured price was going to fall back through the high of the morning** ($71.80 was that high mark). Had price found support at the high (as X says, resistance is now support), I would have seriously considered re-entering with a target of the fibonacci extension. It didn't, though.
**I was sketchy about an extended move past the high because the retrace was a little deeper than I like (to the 50% verses the 38.2%), there was a bit of an upper tail on that first bar, and the first bar's move was a little extended leading me to believe it may have run out of steam for a later move.
"Had a great trade in DPZ today. It gapped up and pulled back. The pullback was deep in the RZ, so I almost passed. But I kept it on my list and it rallied nicely. I entered on a break of the 11:50EST bar. Price had support from a rising 5EMA, and had rallied out of the RZ. Almost a 3% gain when it hit the FE, but the entry was later in the day than X trades. Do you guys trade this late, or would you have passed?
5-minute chart, by the way, on DPZ. Fibs over the first 3 bars low to high.
Hope that helps."
"Tue, May 3rd. GM. Classic X? Not a huge move, but I was able to take a nice sized position due to narrow range, tight spread, and heavy volume. Entry on a break of the 4th bar hammer.
"Michael I traded GM as well. Like minds! I love these because you can get in and out without much slippage.
Trader-X I hope your family gets better."
Trading 27-April-2016 (+ $66)
22 hours ago