Over the weekend I noticed that I had missed a really nice momo move in YHOO on Friday. Today I was watching it on the open. The OR was wide and red, closing just above support of P. The next bar was NR on declining volume and almost inside. I placed a sell stop just below the second bar low thinking it would consolidate a bit more before breaking down, but it was so weak that it immediately broke out of the OR with another WRB that almost tagged S1. I took a partial on the following bar and tightened my stop. As expected, it consolidated the move over a long period as it traded in a narrow range. Eventually, by mid-afternoon it extended further in my direction. I decided to close the position after it carved out a near perfect green hammer (potential reversal).Monday, October 29, 2007
Dummy Trade of the Day - Yahoo! Inc. (Public, NASDAQ:YHOO)
Over the weekend I noticed that I had missed a really nice momo move in YHOO on Friday. Today I was watching it on the open. The OR was wide and red, closing just above support of P. The next bar was NR on declining volume and almost inside. I placed a sell stop just below the second bar low thinking it would consolidate a bit more before breaking down, but it was so weak that it immediately broke out of the OR with another WRB that almost tagged S1. I took a partial on the following bar and tightened my stop. As expected, it consolidated the move over a long period as it traded in a narrow range. Eventually, by mid-afternoon it extended further in my direction. I decided to close the position after it carved out a near perfect green hammer (potential reversal).
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5 comments:
Nice argument for using stops to enter ...I saw that same YHOO set-up, but kept scrolling through my WL - - and the sucker had the nerve to collapse without me.
Glad you caught it.
Jamie,
So nice! Came up on the CNN premkt volume. How about HUM!Alot of plays today.
Thanks guys,
HUM very nice - BO on third test of $77.00
Jamie, do you set conditional stop orders - so that, in the case of the YHOO trade, if the entry bar high were violated, your order will be canceled - or just plain old stop orders?
Ferde,
Nothing too sophisticated, just a stop limit order.
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