Yesterday's big winner turns out to be today's big frustration. I shorted AAPL on a break of this morning's bear flag pattern on the 15 minute timeframe. The trade went along smoothly until price approached the OR range low and started to reverse. I immediately covered 50% because until the OR is taken out on a closing basis, the trade is vulnerable (my interpretation of Trader-X rules). After price rallied and failed to take out the 20MA, I lowered my stop just pennies above. It may sound odd, but when I finally got stopped on the balance of my position, I felt relieved that the frustration had come to an end. After being stopped out, price rallied and tagged the OR high, pivoted and pulled back in. My next entry was a scalp at $80.60 and I was stopped out at $81.19.Thursday, December 28, 2006
Managing the Trade - Apple Computer, Inc. (Public, NASDAQ:AAPL)
Yesterday's big winner turns out to be today's big frustration. I shorted AAPL on a break of this morning's bear flag pattern on the 15 minute timeframe. The trade went along smoothly until price approached the OR range low and started to reverse. I immediately covered 50% because until the OR is taken out on a closing basis, the trade is vulnerable (my interpretation of Trader-X rules). After price rallied and failed to take out the 20MA, I lowered my stop just pennies above. It may sound odd, but when I finally got stopped on the balance of my position, I felt relieved that the frustration had come to an end. After being stopped out, price rallied and tagged the OR high, pivoted and pulled back in. My next entry was a scalp at $80.60 and I was stopped out at $81.19.
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2 comments:
AAPL is kind of a difficult stock to day trade with maximum profits. It is too volatile and might not care for the technicals.
Keep up the good work
-MJ
Thanks MJ,
I knew that after yesterday's WRB, today would likely be an inside day, but the bearish flag was just too compelling.
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