TQNT carved out two inside bars on declining volume on the daily timeframe above. It was in an established upward trend, so it was just a matter of waiting for price to break out of the consolidation base.This morning it setup a low risk entry above yesterday's swing high. The nice thing about this trade is that it took off well ahead of the Fed announcement.
6 comments:
Nice blog you have here. I was wondering what do you think of the market as of right now? With the market crash you think its just a temporary thing or might crash for maybe a week or so? I usually daytrade but this might throw off some technicals as due to panic selling...
Daytrader,
The internals are reaching extreme levels which would imply some sort of technical bounce. We'll see how things play out today.
I'm still trading just didn't have time to post yesterday. I traded CROX yesterday which was a perfect setup given the market weakness.
I recommend looking for quality setups and keeping close tabs on market S/R levels.
Jamie,
Was it a terribly choppy crappy day today or is it just me? Had a bunch of failed breakouts (i.e. fmcn, apol).
Alex,
Very choppy. Bottom fishing seemed to work better than BOs today. One exception was ATHN which reported earnings last night. Gapped up and moved to test all time high in the afternoon. Looks promising going forward so I'm going to add to WL.
Hi Jamie,
On the TQNT trade, why didn't you exit when the 11:30 bar moved below resistance at 5.80? I am trying to figure out optimal points to place SL's that balance out capital and profit protection...
MD
MD,
Price rallied from the BO point, past R1 to R2 (red line) which normally would be a good place to lock in a partial profit. But in this case, profit was so small because of the tight pivot points after two days of consolidation. I decided to stick with it knowing it would consolidate and possibly came back to the base for a retest before moving higher. I liked the volume on the BO and was confident in the setup. It did not retest the base, but if it had I would be watching closely to make sure it was not a failed BO.
Post a Comment