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Tuesday, April 24, 2012

A short week

I'm taking time off to enjoy the Spring. Here is a trade from Chris, and I'll see you guys (maybe) next week!

"BHI was a gap up. 15-minute chart, Fibonacci lines over the first three bars opening range. I didn't like the high tail on the third bar, but the trigger bar (5th bar) filled it in as it was a strong, green bar. I entered on a break of that bar's high and exited at the Fibonacci extension. What I call a classic X trade, though it may not meet your strict definition."



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13 comments:

Chris said...

Thanks X. Another trade was SLB, but the gap wasn't as defined. But nice entry on a break of the 5th bar's high as well, sold at the Fib extension.

Enjoy your vacation!

Javier said...

Enjoy your time off X!

John said...

Nice trade Chris. I think I would have passed with that high tail, but I see your justification. Thanks for sharing.

Brian said...

Traded LEN on Thursday, 15-min chart and entered on a break of the 1:30 bar. Late day entry, but nice move to the Fib extension.

Anonymous said...

Nice trade Brian. Do you have any stats on the efficiency of trades later in the day? I know X has said that historically they are lower probability. Just wondering if that holds true for others.

Ted

Roger said...

Monday, Tom C. u-turn on CHK. 15-minute chart, entry on a break of the 7th bar hammer with solid support from 5/8EMA. Sold at the Fib extension for ~.50 gain.

Brian said...

@Ted, the probability does go down the later in the day you trade, but I still like to pick out nice setups. It only comprises about 15% of my overall trading, though.

Raj said...

Tuesday, any of you guys take a trade like ADM? 15-minute, break of the third bar high? It eventually hit the Fibonacci extension, but I sold just shy of that level at the close of the 5th bar. The negative in my mind was the wide range first bar. Thanks for any advice.

John F. said...

Raj, nice trade and it was on my watchlist. I didn't take it because the wide range first bar was risky imo, as I thought the entire move may have unfolded. What is tricky to me is exits. If you were holding for the exact Fib extension, that initial move missed it and you had quite a deep pullback. Of course, then it rallied to the target. The question, to sell "around" the target or hold out for either the target or exit at breakeven, one or the other?

Chris said...

John, one way to do it is to sell around the high, and then look for a re-entry later. ADM offered a perfect re-entry when it pulled back to the morning high and reversed exactly at that level around 1:15 with a hammer type bar.

Chris said...

AEO and TSM were nice classic setups today (Wed). 15-minute charts, Fibonacci plotted over the opening move. AEO entry on a break of the 11th bar, TSM on a break of the 5th bar. Both sold at the Fibonacci extension.

John F. said...

Chris, thanks for your insight!

Chad said...

Nice comments. Thanks.