The first two charts are the daily timeframes for AMZN and CROX respectively. They show that I am looking for narrow base and break patterns of strong stocks that are still running strong after earnings gaps.The following are the 5 minute timeframes of my entries and exits. I look for a low risk entry points as soon as the stocks break their base.
11 comments:
Hi Jamie,
What made you stay with AMZN after you took partial profits and went down by more than 1 dollar. At what point would you have sold the entire position?
Thanks,
AJ.
Hi AJ,
Last time I traded AMZN, I took my profits way too soon and missed a good portion of the move, so I didn't want to repeat that again today.
I was looking at the Fibonacci retracement levels from yesterday's low to the morning swing high and hoping price would stop at the 25% retracement which it did. If not, I would have been stopped out at $72.00.
I was also monitoring volume on the retracement. After the first 15 min. red stick, volume on the retracement declined which led me to believe this was, in fact a retracement and not a reversal. On a reversal, I would expect volume to increase.
Hi Jamie,
Same question for CROX. What's your initial stop loss and also after you took partial profits, what was your stop loss thereafter? Thanks
Pat
Hi Pat,
My initial stop for CROX was about 30 cents - just under the previous 5 min bar. MY stop after the partial was $84.17, 2 cents below the first red bar after entry on the 15 minute timeframe.
After a vertical move, I like to give the stock enough room to consolidate, however, CROX did not gap up like AMZN, so I wasn't prepared to give it a full 25% Fib. retracement.
Jaime,
Good heads up. Have been looking at nasdaq >40 and seeing which ones are moving around the open and continue like above, holx joyg gmrk.
Thanks BL,
That is a good strategy especially when the watch list is thin.
Continue at this rate and I may have to force you to sign a book deal.
Jaime,
Of course today it was the oils on the >$40 Mkt scan going down in unison, but hey they rallied the other day and this am got some oil inventory news...cause and effect.
BL,
All of my alerts went off around the same time which causes me to miss most of the trades. VLO set up a nice short below yesterday's low and when the crude inv. was released at 10:30, it was good for another 1.5 pts.
Thanks. Still on CROX. Both the 4th and 5th bar closed above the PP. Any particular reason why you did not enter the trade at that point but waited till 8th bar?
Pat
Pat,
I look at three timeframes for the entry 1,5, and 15. CROX was a little choppy in the early going and I was looking at a wide stop and some upper shadows so I waited.
I prefer some sort of base and break or narrow box play pattern to unfold on any of these timeframes. Patience paid off and I was able to execute on my criteria for B&B.
Post a Comment