A choppy session with a fair share of failures. The first chart is the 15 minute timeframe and the second is the 5 minute.DLTR gapped up following Friday's NRB and presented a low risk entry on a break of the second bar high. As with many setups today, there was a caveat, the first bar's long upper shadow. I took the trade anyway knowing that last week's pivot point high would most likely be challenged and that the risk:reward ratio fit my rules.
Although choppy at first, DLTR set up a nice base and break pattern as it tested last week's pivot point. This made me more hopeful that the challenge would succeed. However, shortly after the breakout, DLTR came back in sharply. This did not feel like a retest of the breakout point. On the 15 minute timeframe it carved out an ominous looking hanging man, so I took my exit as the profit on this trade was limited to begin with.
7 comments:
Jamie,
Nice trade on DLLR. I was looking at it for a short from HCP list but didn't find a spot to enter.
I just have a question about this new style of candlestick charts were some of the bars are hollow and some are filled:
http://bvitha.files.wordpress.com/2007/05/ma3min52907.jpg
Do you know why some are filled and some are hollow? I couldn't find any info online about it but Tradestation calls it candlesticks with trend.
Later
Hi Bubs,
It's odd that only the NRBs are filled in green and the rest are hollow. I don't use Tradestation so I'm not in the know. Just curious as to how they look when the candlesticks are forming.
Nice pointers Jamie
Just noticed I put the wrong stock on my previous comment. I guess I had DLLR on my mind and just realized you traded DLTR, sorry about that.
I was looking over some of the charts and it does look like only the NRB's are filled but there were a few with long upper shadows that were also filled. I also saw one hollow red candle and hollow grey candle.
I will check tomorrow to see how they look when they are forming.
Thanks Flatwallet.
Bubs, the candlestick situation sounds very confusing. Hopefully, it was a one day snafu and things get back to normal tomorrow.
Hi Jamie,
Could you take a look at GTRC plz? I traded it today, entered around 10:40am - when it took out the hod, but then got stopped out around 1:55pm on the ugly red candle (5 mins).
A hour latrer, around 2:55pm it took off and broke out strong for a >$1 move.
What could/should have I done better in your opinion?
TIA,
aon
Hi AON,
Looking at the 15 minute timeframe, your entry came after a +$3.00 move to the upside. At you entry point volume was on the decline relative to the earlier morning move. GTRC fell into the dead zone after your entry. Assuming you place your stop on the low of the previous bar, you would not have been stopped out if the initial stop was not tightened.
IMHO after a $3.00 move you have to consider that the stock will soon consolidate that move. When a stock falls into the dead zone, you might want to exit at the best price or give it a wide stop.
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