Wednesday, May 09, 2007

Narrow Base & Break Patterns


Here are two B&B patterns I traded today from my usual suspects list. I noticed quite a few more such as MA and ICE. I close all of my positions before the FOMC release and I didn't care for the wild swings after so I waited a while before deciding if I wanted to wade back in. FFIV gave me a second chance so why not.

8 comments:

Prospectus said...

Jamie,

How do you know that a stock breakout is for real, instead of just dead for the day and jinking around?

hadman said...

prospectus,

I think the volume and historical resistance can give you great clues.

TJ said...

Propectus,

I don't know and that's why I use buy stop orders two pennies above (below) the base. I don't have 100% success on these setups, but when they do work, they work very well.

TJ said...

Thanks Hadman,

I agree and I also find that the longer a stock bases in a narrow range, the more powerful the move. FFIV, for example, was basing between $77.00 and $77.50 from 10:30 to 2:30

Highchartpatterns said...

Very nice trading Jamie -- excellent eye and equally impressive execution. Kudos.

TJ said...

HCPG,

Thanks guys, appreciate the compliment from the B&B experts.

Anonymous said...

Hi Jamie,

I notice you use the phrase "price stalls" and I have seen it being used in other blogs as well. Could you pls. define a "stall" - are you looking at it on a 1 min or longer timeframes?

MD

TJ said...

Hi MD,

Do you have a specific example where I used that phrase?