HANS gapped down on the open and was quickly met by bargain hunters who managed to push price back up to Friday's morning swing low. HANS could not close above resistance and it carved out a NRB as price fell back under the 5 period EMA. This set up a dummy short. At first I was planning to take a partial when price retested the ORL, but when I saw the volume spike on the second WRB, I decided I would fold as this spike implied capitulation.
ABX gapped down on the strength in the US dollar. It set up a dummy short after it failed to close above down sloping 5 period ema at the base of R2 (red line). Here again, I wanted to partial out at the retest of the ORL, but the lacklustre volume accompanying the move down, forced me to fold.
MTW was a forced trade based on a low risk entry. If you look at the daily chart, you will see that it was due for a bounce. I quickly scratched the trade when after breaching R2 (red line), it popped right back above it.
10 comments:
i know what you saw in MTW. i look at that and tell myself that its gotta close above the opening proce of 41.18. but when you get a juicy, tight stop loss, its a GO! of course the next time i wait for a close above the OR opening price, it will run away from me.
Good Trading today!
jamie:
we see many NRs in any given day..how do you know which ones to act on?
many NRs are just like anyother bar.
Good Observations guys.
Gurlate,
NRBs which set up at key S/R zones usually offer good opportunities. HANS is a good example. Also NR inside bars that form as part of a pause in an established trend, up or down are also appealing as long as they are accompanied by declining volume.
It's always a good idea to confirm the setup on more than one timeframe.
great catch on HANS and ABX... been seeing a lot of those setups lately, especially off the pivot areas. I'm still tied to fibs. but the pivots (no matter where they are) are awfully accurate.
Jamie,
Nice load up the boat on HANS short. WL can be profitable. LULU on the list?
When you enter a trade based on a 15-minute chart, do you wait for the entire bar to complete?
TK,
The 15 minute timeframe is my primary chart and this is where I spot promising setups. In these three trades I did wait for the candles to complete. But on the HANS trade I waited until 10:49 and if you look at a 1 minute chart you will see a base breakout entry at that point.
TK,
Cont'd - I use multiple timeframes -15, 5, and 1 min. for most of my entries. Exits are easier to manage on the 15 once the trade gets going in my favor. The MTW exit was managed on the 1 min. because it was a head fake.
OONR7,
The combination of fibs and pivots are a powerful trading tool. They help confirm each other because you have well defined trading criteria. Stick with them both.
I often use this combo, but usually remove Fibs when posting because too many lines.
BL,
LULU not on the list. Three WRBs on the daily could mean a pause.
Post a Comment