NTRI gapped up on Thursday and pulled back sharply. It did not setup a valid retracement entry on Thursday because by the time it carved out a reversal pattern, it was too close to resistance from the morning's sideways consolidation. Friday morning price held above Thursday's low on the open and began another sideways consolidation just above its rising 50 period MA. By the time price was trading back near the ORH, it had carved out a shallow bullish base. I took a long entry on a break of the ORH. My preliminary target was Thursday's midday resistance level at $62.00. Price easily broke that level so I stayed in the trade and took a partial as price consolidated near the $63.00 level. Former resistance held as support ($62.00) and I was able to add another pt. as price pivoted off of support and rallied up to $64.00 - another congestion area from the previous day.
N.B. Some gappers don't setup a good entry until the day following the gap so I am making a point of checking yesterday's gapper list for any obvious dummy type entries.
5 comments:
I had NTRI on the close of the 5th 15min. bar (5th bar closed above 3rd bar high which was a doji). My fear to lose on the trade reared its ugly head and I got stopped out for a 15cent gain. What a mook.
What a bummer, your initial instinct was correct. Over time, you will become more confident with your choices and overcome the fear of a small loss. I try not to move my initial stop until the trade is out of the gate.
Hi Jamie,
What type of orders do you use for entry, exit and when you trail your trades ?
If I am correct, you enter 2 cent above last candle for longs and place your first Stop 2 cents below the same candle ?
Hi Javier,
That is correct. On a base and break entry like NTRI, I use buy stop orders because they tend to move very quickly. On a candlestick reversal pattern, I usually use a limit order to try and get the best entry because they usually move much more slowly.
Once the trade gets going I move my stop up manually.
Thanks Jamie :)
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