Thursday, November 02, 2006

Trade of the Day - NVIDIA Corporation (NASDAQ: NVDA)


This trade started out as a gapper dummy entry on a pullback to the rising 10 period MA. My target was a 62% retracement of the last leg down. However, shortly after my entry NVDA carved out a lower high and started to pullback. I had to scratch the long entry. As Brian Shannon of Alpha Trends is fond of saying, "from failures come fast moves", so when price fell below the 25% retracement level, I decided to short NVDA. My stop was set just pennies above the 20 MA. My target was yesterday's low and it was reached in mid-afternoon.

2 comments:

Glenn said...

Hi Jamie,
Are drawing your fib lines tuesday high, wed low? I have been using previous day high and low.
Thanks
Glenn

Jamie said...

Hi Glenn,

For gapper/dummy setups, I measure Fib extensions from the previous day high or low (like Trader-X). For retracements and non gap breakouts, I'm following Briefing.com and measuring Fib from the beginning of the last leg up or down.