OTEX was a B&B candidate on the daily chart above.
It opened on the base (blue line) and retraced sharply off the open. It then carved out a base at the red line which represents an intra-day resistance level from yesterday. I took a long position on the break of red line and a partial on test of ORH. OTEX eventually carved out a perfect C&H pattern which consolidated nicely prior to the break where I re-entered my original share size. In reference to the trading tip in my last post, OTEX is a good example of price moving into the base and consolidating with a few NRBs prior to the actual BO.
Normal Fib. extension for a C&H pattern is 100%, however, when that level was reached I only had two WRBs on my 15 min. chart instead of my usual three, so took a partial and closed the balance 5 minutes later.
8 comments:
Beautiful! Wish it was my turn.
Jamie,
From the 2nd chart where you demonstrated the C&H, how did you determine that $30.8688 is the 100% Fib level?
Thanks!
Thanks Jerry
Sorry CDt, the Fib extension points are hard to see. I extend my Fibs from the low of the cup to the base of the handle.
jamie:
how did you spot OPEX, no gap not on watch llist..
also AKAM you executed the trade in the first 15 min..now i am in a tizzy fir the first 30 min..how do you sort so many stocks and look for one that may interest you..how many charts open at any time and do you plan ahead to open those charts?
i know you play gaps also,,so those could not have been pre planned anyway
thx
Jamie,
AKAM, I'm not clear about "If price rallies into base...." Do you mean "sells off" or "handle"?
Thanks
Gurlate,
Try using WSW's Briefing PreMkt gaps, akam cmi flir esrx nihd vdsi algn....Trade ALGN -8/30" chart. WOW 30" chart can work! also -4/15" IB hammer, or -1/5" doji
Gurlate,
OTEX is a Canadian co., one of a few Cdn. tech companies that I follow.
The AKAM trade was on 5 min. timeframe at 10:15. AKAM was on the Briefing.com gapper in my pre-market post.
I scan at night to look for stock picks for the following day, so I have a short list of possible trading opps, plus I review all of the daily charts in the WL to look for potential trades. Plus the Briefing.com gapper list. During earnings season, I also look at AH trade following earnings releases.
MSFT Up tonight - BIDU down.
BL,
A good example of what I mean is my SIGM trade on Oct. 8th. Price rallies into the base and breaks out without consolidating before the break. Then it spends an hour trading sideways before moving higher.
do you ever lose money?
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