More from Todd

First, there is a lot of question and answer in the comments of the previous few posts, and a few additional trades and discussions as well. Also, I think I have a few unanswered questions that I will try to get to in the next day.

Today I traded GS. It stalled out at the opening range high, and I sold for a small profit. It is interesting to note that it rallied to the Fibonacci extension later in the day, so if you had more patience than me it would have been a nice winner. But I do better getting out at the first sign of trouble, so I'll take the few dollars I made.



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Todd's VCI trade

This is the trade I referenced in the previous post. The entry was a break of the trigger bar's low (marked).



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Todd's setup

First, thank you to Trader-X for letting me make some guest posts in December. I have often thought of starting my own blog but I also see some of the challenges and headaches it can present, so I'm not sure if I want to undertake the task. Time will tell.

Next, X described my setup as a "u-turn" type setup which is a term that I believe Tom C. originally coined. Here are a few more details about what I trade:

1.) 5-minute charts
2.) 5EMA
3.) I like taking setups that form in the first 90 minutes (preferably, the first hour). If it takes longer to form, the odds of success are lower. This is an old X rule that still holds true. I do occasionally take some trades outside of the first 90 minutes, but my mix is probably 85/15 (first 90 minutes vs. the rest of the day).
4.) I like crisp moves - straight up and straight back down (or vice versa). I plot my Fibonacci lines over the opening move, and look for price to move back through the 61.8% retracement with confirmation from the 5EMA (pushing price up for a long, down for a short).

SLB is a good example from today. Price rallied with the first five bars, and the sixth bar broke the fifth bar's low, so I plotted my Fibonacci lines over the first five bars. The 7-10th bars chopped around the "retracement zone", and the eleventh bar closed below the 61.8% retracement with the 5EMA providing overhead resistance. I entered on a break of the eleventh bar's low, and covered at the Fibonacci extension. I watched the opening range low (set with the first bar of the day) closely - often price will reverse at that point and prompt me to take profits. SLB fell through the low, however, and easily hit the Fibonacci extension.




VCI was another good trade today. I'm having trouble with the chart (I'm trying to adapt them to X's format on this blog) and will try to get it posted soon, but please take a look at it and you will see what I mean. The entry was a break of the sixteenth bar's low.

Let me know your thoughts or questions in comments. Thanks!

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