I sort my watch list by % change after 10:00 and review the charts of the biggest gainers and losers. Nothing on the losing side caught my eye, but on the gainers side, I really liked CMI and DLTR because they had gapped up and were trading above the previous day's range. I ignored some of the other names like FSLR because it was too extended. CAL was also in the top 10 but retracing the early move so I set it aside.The first chart is a 5 minute timeframe of CMI. I entered long on a break of the ORH following a bullish green hammer.
The second chart is a 15 min. chart of DLTR with a very bullish ascending triangle pattern at the base of the ORH. I exited DLTR when price stalled just below the 38% Fib. extension of the previous day low to the ORH because the BO was taking place on declining volume and I felt it didn't have legs. When price took out morning resistance I re-entered following a NRB.
Both CMI and DLTR were above R2 when I entered the trades. On the daily, both had NRBs on Thursday, (CMI looks like NR7).
CAL eventually broke out of an ascending triangle pattern and had a nice, quick run up. Notice how it held R2 as support on the retracement and ran up even higher.
4 comments:
Jamie,
Nice work. looking at stocks over $40 the market reversed 8/29. Check out NTRI with ascending triangle.
Jamie,
DLTR had 2 doji prior to your entry. What made you decide to enter the trade before the break of ORH? Thank you
Warren
Bl,
Thanks, got a couple of nice trades with NTRI this week. I'd like to see it consolidate here before the next leg up.
Warren,
Long lower shadows on both dojis made the pattern more bullish.
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