Tuesday, March 27, 2007

Trade of the Day - Apple Inc. (Public, NASDAQ:AAPL)


AAPL had another nice rally this morning and tagged a pivot point from the daily timeframe (Jan. 11th doji high) before carving out two bearish reversal patterns on the 5 minute timeframe. After taking out the pivot point it printed a doji evening star and shortly thereafter a hanging man. I shorted the break of the base formed by these two patterns and AAPL delivered very nicely.

I took a partial when price tagged $96.00. AAPL appeared to capitulate on the WRB as it printed a huge volume spike and I covered the balance of my position and prepared to long a reversal. However, it printed a series of inverted hammers which failed to confirm and just kept going lower. Finally, it reversed and I was able to enter a long position. I should have exited as price approached $96.00 which was my initial partial on the short, but for some reason I was optimistic. About a half hour later, AAPL carved out another hanging man at the base of resistance and it was time to say goodbye.

7 comments:

Flatwallet said...
This comment has been removed by the author.
Flatwallet said...

Jamie,

Can I just sign you to a publishing deal now? Not that I can or anything.

I just picked up the book today. I hope to be 1/10 the trader you are in a few months.

Thanks,
LP

Jamie said...

Thanks for the kind words LP. I'm sure you will enjoy the book and the many examples in the second half.

This was a pivotal book in my trading development.

Good reading and good trading!

bl said...

Jaime,
What is the name of the book?
Thanks,
BL

Jamie said...

The book is Techniques of Tape Reading by Vadym Graifer

It helps define low risk entry points through tape reading ie. price/volume relationships.

Anonymous said...

What program do you use to trade and produce these charts? They are great. I'm in a commodities trading class at the University of Florida and it would help me I think. Thanks.

Jamie said...

Esignal is my charting software. I set alerts at key pivot points. The rest is visual.