MEDI gapped up on the open and presented a shallow base and break entry in the afternoon. I didn't like the volume on the break, but it worked out. The doji star about an hour into the trade resulted in a stop out.
The above chart is a wide range view of DNDN. As highlighted last night, DNDN was a watchlist stock looking for a reversal. The gap down into pivot point support offered a compelling opportunity for a technical bounce after a few days of bleeding. The 5 minute timeframe below, highlights my entry, exits and stop management.
6 comments:
Nice trade, fib# at today's low also, text book h/s 30". MEDI 8/30" also
Thanks BL.
Brain Shannon from alphatrends.blogspot.com also traded DNDN but he did more of a short squeeze trade.
Thanks Hadman, I just watched his video and noticed that his entry and exit are similar to mine. DNDN may make a double bottom here. I'm still keeping it on the watchlist as I believe, it will eventually rally back up to fill the bearish gap.
Jamie, I was watching this after your post the night before, but when it gapped so far down below the bullish gap support at $18, I wrote it off. But it bounced just as you said! You're a pro.
Also,I just wanted to say that I did something I never have before, thanks to things I learned from your site--I planned two scenarios for a consolidation breakout on RIMM, one long and one short. I was ready to trade wither way that the price moved. I ended up missing the move (got distracted), but it was a big step for me to approach a stock without a built in bias, but to observe the patterns and plan based on what could happen. Thanks for your blog!
Thanks for your comment Prospectus. I'm happy to hear about your new approach and I hope it works for you going forward!
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