AAPL gapped up on high volume and carved out two bullish bars before reversing and consolidating the first leg up. It retraced 25% of the move from Friday's low to the 10:00 high and held the ORH as support. As price broke the fourth bar high, I took a dummy long entry. I took a partial on weakness midday. Price pulled back towards its rising 20 MA and reversed for a more bullish afternoon rally which almost reached the 100% Fibonacci extension.
Monday, April 23, 2007
Dummy Trade of the Day - Apple Inc. (Public, NASDAQ:AAPL)
AAPL gapped up on high volume and carved out two bullish bars before reversing and consolidating the first leg up. It retraced 25% of the move from Friday's low to the 10:00 high and held the ORH as support. As price broke the fourth bar high, I took a dummy long entry. I took a partial on weakness midday. Price pulled back towards its rising 20 MA and reversed for a more bullish afternoon rally which almost reached the 100% Fibonacci extension.
Subscribe to:
Post Comments (Atom)
4 comments:
Nice trade Jamie! Once you have taken your partial how low will you allow it to trade?
Glenn
Dehtrader.com
Hi Glenn,
I'm prepared to go as low as the rising 20 period ema. If price doesn't hold the ema on a closing basis, I bail.
Hi Jamie,
Having taken a closer look on your AAPL trade, would like to ask if you usually enter on the high of doji for such reversal case? Do not need confirmation by waiting for a close above it? Thks
Zen
Hi ZEN,
At the time of my entry, I did not know it would close as a doji. The previous bar had tested and held support, so I jumped in on a break of the fourth bar high. The fourth bar was also a doji and perhaps a weak signal bar, but it was the successful test of support that influenced me the most.
Post a Comment