SUPX - 112905
at 2005-12-04 19:51:27
The loser. This was a "bread and butter" set-up similar to the many I have highlighted in the past month.
1.) What did I see?
A gap down and rally into the retracement zone from the previous day's high to the opening range low. The fifth bar was narrow range and a weak candle.
2.) What is the entry?
A break of the fifth bar low.
3.) What is the exit?
The target was the morning low, which was not reached. SUPX started to fall but reversed and took out my stop (the high of the entry bar) two bars later.
Notes - in "second-guess" mode, the only negative about this trade was that i
BCRX - 113005; 15-minute chart
at 2005-12-04 19:51:27
I have a function to attend, but wanted to post a chart before I left. This one is a candidate for "trade of the week".
1.) What did I see?
A gap up and somewhat strong first bar. The second bar is a narrow range, inside bar and closes above the 50% mark of the wider-range first bar. In the past, I have discussed a pattern with multiple upper tails/wicks - as BCRX has in the first two candles. This can be a bearish sign, but if price instead rallies and takes out the high there is a good probability of a rally.
2.) What is the entry?
A break of the second bar high.
3.) What is the exit?
1/2 closed after $1 gain. The other 1/2 was
The Festivus Season is upon us!
at 2005-12-04 19:51:27
I have a tradition around this time of year - now made easier by Tivo*.
Around the beginning of every December, I fire up the classic Seinfeld episode ("The Strike") that first intoduces us to Festivus!
Here is the script. And, if you are bored and looking for some laughs, you can find all of the Seinfeld scripts here.
*FYI - you can program your Tivo from Yahoo! now.
PS
Thursday's charts
at 2005-12-04 19:51:27
What a day. I will post charts tonight - check back after 9:00*.
If you want to look on your own and take a shot at answering the three questions, try these (all 15-minute charts):
VLO - fourth bar
COST - fourth bar
BBA - second bar
LLTC - fifth bar
I am still babysitting a few positions, and will take off after the close. See you tonight.
*edit - it may be later than 9:00...check back.
BBA - 120105; 15-minute chart
at 2005-12-04 19:51:27
1.) What did I see?
A gap down and wide range first bar. The second bar is a narrow range, inside bar and forms a nice hammer (and, stays above the 50% mark of the first bar - a bullish sign).
2.) What is the entry?
A break of the second bar high.
3.) What is the exit?
The target was the retracement zone from the previous day's high to the opening range low; it was hit three bars after the entry.
Notes - this was a very low price stock with an entry on a narrow-range bar that allowed a good-sized position; the total move returned just over 8%.
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