The market gapped lower on the open and both TBSI and TSAI held their 50 SMAs on early weakness. After recapturing its 20 and 5 emas, TBSI carved out a NR7 bar and setup a low risk long. It ascended steadily towards its B&B resistance line (blue line). Notice how it consolidated briefly at the blue line before breaking out.I hesitated a bit with TSAI, and waited for price to consolidate before entering long. Again, it paused at the blue line before breaking out. TSAI was a little choppier so I took a partial.
4 comments:
Very nice on TBSI! That's like 4R or more. i never would have gone long there. What made you think it would clear the OR high? I guess you did have a bit more than 1R from your entry to that level, so you had some room before resistance...
Looks like the market was brought to you today by the letters T, S and I, and the number (NR)7. ;)
Prospectus,
The ORH/L are pivot points like any other. The ORH and midday resistance from Monday had been recaptured by the time I setup my entry. The ORH was approx. 2R away from my entry point. If a NRB sets up on, or near PP support, that is a reasonable entry point. If the trade stalls when the next PP level is reached, then that is a good place to book some profits.
In the case of TBSI, price consolidated briefly as it retested the ORH but did not close below the rising 5 period MA, so I felt good about staying in the trade.
I will give you an example of PP trading that might hit home using RVBD later this evening. Stay tuned.
Hi Jamie,
Do you usually have 5 & 20 EMA and 50 & 200 SMA on your day trading charts?
Do you always wait till the stock recapture its 20 & 5 EMAs before going long? Thank you.
YR
YR,
I always use the 5, 20, and 50 MAs on my intraday charts. I also use the 200 mainly on my on my daily timeframes.
This is one day trading strategy that I use among several. I don't advocate going long if price is under the 5/20 MA's unless you are looking to fade the gap.
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