When I was reviewing the chart last night, I wondered how long it would take to fill Monday's gap. I was thinking maybe two sessions, so I was elated when it happened so quickly.
I traded this too - same entry point as yours. I got shook out (mentally) when the price started to go crazy at the 11:15 bar. If you look at the minute charts, you'll see this wild yo-yo swings from 11:15 to 11:24
I have noticed this happen in other trades as well - almost as though someone is trying to take out folks' stops. But this was not just one spike.
Any ideas on how to deal with this or what causes something like this?
I noticed the same thing you did and I discuss it in my latest post. Unfortunately, I'm not sure of the actual cause and can only speculate that there was an order backup somewhere that resumed trading at that point.
Those trades and there were hundreds of them, did not pass through the regular channels. I saw them on the time and sales screen, but not on level II.
I stayed in the trade because of the NASDAQ electronic trading should protect the trade, however, I did remove my stop until regular trading resumed. When this happens on a NYSE stock, I hit the exits too because I have no confidence in the Specialists.
Hi Jamie, I didn't see any bad print (8th bar) on my prophet charts. Quick question: Why didn't you enter on 4th bar when it broke above 3rd bar high a valid one? My thoughts are that 3rd bar is hammer and proximity of 5EMA support at 4th bar.
Given the move, did you partial take profits anywhere and adjusted your stops?
Both entries are valid. As I explain in my latest post, I did contemplate entering on the fourth bar, but I decided to wait for the OR high to be taken out. I think I was being extra cautious based on size.
I did not partial based on my conviction that the stock would fill the gap. The move was orderly and none of the candles closed below the rising 5 period MA. My initial stop was 25 cents below the entry bar. Once price tagged the 50% extension, I moved the stop to the 9th bar low and then as each bar closed, I moved my stop below the next completed bar.
Yesterday I mentioned keeping LEND on the radar for today and it delivered a nice gap fill. Sweet. I'll explain my trade in more detail this evening.
6 comments:
Hi Jamie,
Ya, I have been watching this stock for a few days also. Made a quick scalp on it today.
Hi Joseph,
When I was reviewing the chart last night, I wondered how long it would take to fill Monday's gap. I was thinking maybe two sessions, so I was elated when it happened so quickly.
Hi Jamie,
I traded this too - same entry point as yours. I got shook out (mentally) when the price started to go crazy at the 11:15 bar. If you look at the minute charts, you'll see this wild yo-yo swings from 11:15 to 11:24
I have noticed this happen in other trades as well - almost as though someone is trying to take out folks' stops. But this was not just one spike.
Any ideas on how to deal with this or what causes something like this?
MD
Hi MD,
I noticed the same thing you did and I discuss it in my latest post. Unfortunately, I'm not sure of the actual cause and can only speculate that there was an order backup somewhere that resumed trading at that point.
Those trades and there were hundreds of them, did not pass through the regular channels. I saw them on the time and sales screen, but not on level II.
I stayed in the trade because of the NASDAQ electronic trading should protect the trade, however, I did remove my stop until regular trading resumed. When this happens on a NYSE stock, I hit the exits too because I have no confidence in the Specialists.
Hi Jamie,
I didn't see any bad print (8th bar) on my prophet charts. Quick question: Why didn't you enter on 4th bar when it broke above 3rd bar high a valid one? My thoughts are that 3rd bar is hammer and proximity of 5EMA support at 4th bar.
Given the move, did you partial take profits anywhere and adjusted your stops?
Thanks, Pat
Hi Pat,
Both entries are valid. As I explain in my latest post, I did contemplate entering on the fourth bar, but I decided to wait for the OR high to be taken out. I think I was being extra cautious based on size.
I did not partial based on my conviction that the stock would fill the gap. The move was orderly and none of the candles closed below the rising 5 period MA. My initial stop was 25 cents below the entry bar. Once price tagged the 50% extension, I moved the stop to the 9th bar low and then as each bar closed, I moved my stop below the next completed bar.
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