The NRB dipped below the base and came right back so I didn't pull the trigger until the low of the NRB was taken out. $30.25 was my entry price. If you look at the 1 minute timeframe you will see three tags of the base between $30.32 - 30.27. A good B&B pattern normally breaks on the third test and then usually, but not always, retests briefly before the big move.
When I use the term BO bar, I'm referring to next bar, below my NR base. I prefer when that bar closes on its lows, if not it could be offset and reverse. In this trade with AKAM, after moving down from $30.25 to $29.60, price rallied all the way back to my entry price before moving back down. So that means that I can't relax about the trade until the low of the BO bar ($29.60) is taken out.
I noticed a lot of offsets this morning especially looking at the NAZ 15 min. I just pray when this happens because it's out of my hands as to whether or not the base will hold as resistance.
Great trade Jamie! Coincidentally, the level which you got stopped out is also the 100% fib ext from ORL to previous day high. Did you use fib for this trade?
I did look at them briefly, but I just had too many lines. AKAM is a watch list stock and I was basically targeting PP support dating back to May - June 2006. The exit bar came within pennies of the prelim. target. But with market so weak I decided to play it textbook, in case we continued lower.
Textbook dummy short with some offsets to make it a little more suspenseful.
4 comments:
Jamie,
Do you normally pull the trigger on a trade when the BO bar has closed (preferably near its low) or do you trade it right when it passes the BO price?
Jonathan,
The NRB dipped below the base and came right back so I didn't pull the trigger until the low of the NRB was taken out. $30.25 was my entry price. If you look at the 1 minute timeframe you will see three tags of the base between $30.32 - 30.27. A good B&B pattern normally breaks on the third test and then usually, but not always, retests briefly before the big move.
When I use the term BO bar, I'm referring to next bar, below my NR base. I prefer when that bar closes on its lows, if not it could be offset and reverse. In this trade with AKAM, after moving down from $30.25 to $29.60, price rallied all the way back to my entry price before moving back down. So that means that I can't relax about the trade until the low of the BO bar ($29.60) is taken out.
I noticed a lot of offsets this morning especially looking at the NAZ 15 min. I just pray when this happens because it's out of my hands as to whether or not the base will hold as resistance.
Great trade Jamie! Coincidentally, the level which you got stopped out is also the 100% fib ext from ORL to previous day high. Did you use fib for this trade?
Thanks SOT,
I did look at them briefly, but I just had too many lines. AKAM is a watch list stock and I was basically targeting PP support dating back to May - June 2006. The exit bar came within pennies of the prelim. target. But with market so weak I decided to play it textbook, in case we continued lower.
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