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Friday, February 17, 2012

A trade from Brian

There have been a lot of great comments about Michael's setup, including charts and analysis of what did and didn't work. Brian has contributed a lot, and here is a trade of his from today:

"I entered BMRN on a break of the 4th bar high. The first bar was very strong and wide range, but didn't hit the 8EMA. The 2nd and 3rd bars pulled back, and the 4th bar was an offsetting bar. I'm not sure this is a great example of Michael's setup, but I have seen these work well on both the long and short side. I sold when price hit the 8EMA for a .50 gain."

Brian also discussed a trade that didn't work (WSH) and a few more that did (ABB and NILE) in comments of the last post. There is some good input from Tom and TT as well.

I'm looking forward to highlighting more of your setups and trades in the weeks ahead. Don't forget that the markets are closed on Monday!



Times of Your Life said...

excellent trade Brian

Ken said...

Nice trade and great comments and analysis, thanks for sharing. Happy three day weekend everyone.

Anonymous said...

Nice trade. Would you have traded this same setup had the first bar still been wide range but weak. IE, kind of making a u-turn when you got the offsetting bar?


jvs said...

this might be an odd question, but i found the last two trading days to be very difficult. several times i was in a good trade and suddenly a huge seller would come in, stop everyone out, and w/in minutes resume the previous trend. i'm wondering if these moves maybe related to options expiration? does anyone have any thoughts on this? are x-trades effected by options expiration?

i am kind of new to x-type trades, but i know my other trading stratigies do not work on options expiration. so i wondering if even x-type trades are also affected.

Tom said...

jvs, it's hard to comment without knowing what you were trading and seeing the charts. But, I didn't even realize it was options expiration so the answer to your question is "no, it didn't affect me". I trade purely based on technicals, and if a valid setup occurs I enter until I am stopped, my target is hit, or something changes. I don't really subscribe to the theory that things happen outside of that - ie, market makers or this or that. I think it is just a crutch for bad chart reading (not talking about you, just speaking in general terms).

jvs said...

Thank you Tom for your responding to my question. Not having to worry about x-type trades on options expiration is good to know and saves me a lot of time on backtesting. lol

Brian said...

Terry, I'm not really sure. I'd have to see the chart. I'll look for something similar to what you describe when I review charts today.

Arthur said...

Great posts and I am really looking forward to studying this setup this week. Thanks Michael and Brian.