RVBD - Strong OR, followed by a bullish hammer which closed in the upper segment of the OR. The third bar is a hammer like star with a long lower shadow. The setup is at the base of RVBD's all time highs so it's a bullish gapper setup in the daily spot. I took a dummy long on the break of the 2nd bar high. RVBD rallied up to the 38% Fibonacci extension of the PDL to the ORH in one fell swoop at which point I took a partial. The breakout bar closed near its high which left the door open for some more upside and I allowed for a 38% retracement of the move so far. It retraced 38% and started to move up, then stalled. My thought was that it is carving out a lower high which means further retracement, so I decided to exit the balance of my position. Good decision.Initial stop was 3rd bar low. After the partial, I moved my stop on the balance to break even.
I'll be back later with my short trade of the day -AMZN.
4 comments:
another beaut... nice.
Thanks ooNR7,
I was hoping for a little more, but on a day like today, I'm happy with the trade management.
Jamie,
When you said you allowed for 38% retracement, are you referring Fib from ORL to session high?
When you exited the balance, was it at the close of 11th bar on 15min? Because only then would one see that it is carving out a lower high. Unless you were using a lower time frame. Thanks
Zen
Hey Zen,
Yes re: Fib. retracement.
No, the 11th bar opened lower and took out the previous bar low, that's enough confirmation for me. RVBD is not very liquid and it has a wide spread so I don't want to let it run away from me.
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