I missed the open due to some maintenance work that had to be dealt with first thing this morning, but the day was not lost because I was able to get some very good low risk short setups in the late morning.
I'll start with AMD because it was on our watch list this weekend as a short candidate below $31.60. In late morning, AMD took out he low set on the opening 15 bar and I went short at $31.55. I covered in the last half hour at $30.17 for a nice gain.
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The second shorting opportunity was BRCM. This is a new setup which I've been developing lately. I set an upper and lower parameter based on the late day trade of the previous trading session as marked by the two blue lines. The object is to trade in the direction on the first bar that closes outside of the parameters on the 15 minute timeframe. Although both the upper and lower parameter were tested in early trade, our first close below the lower parameter didn't occur until shortly after 11:00 as marked by the pink arrow. This is wide range bar on higher volume and presents a strong indication that BRCM is going lower, however, a higher risk because the stop would set above it. So I waited for a lower risk opportunity. The next bar was a hammer (potential reversal). The next two bars are NR and both closed below the blue line. As price took out the second NR bar, I took the low risk short. I covered 50% after a gain of $1.00 and covered the balance near the close.
2 comments:
Great call on the AMD, Jamie. I also appreciate the insight into your latest set-up. Thanks!
Thanks Chris,
I'm hoping the new setup will be a good way to trade when there is no clear market direction and I look forward to developing further.
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