The markets gapped up on the open and almost the entire WL gapped as well. DRYS gapped up and rallied in the first hour. It carved out a bullish flag at the 38% Fib retracement of the ORL to the early swing high. The trigger bar was a doji hammer NR7, so I decided to get long. I took a partial at the 38% Fib. extension of the previous day low to the ORH. Shortly after, price started to retrace, so I allowed for a 38% retracement of the last leg up. Eventually price took out the previous high, but I was getting antsy because I had to fold ahead of the 2:00 release of the FED beige book.
NVDA - 2 inside bars on declining volume. It started off very nicely but the retest of the ORH turned into a retracement so I bailed.
NVDA - 2 inside bars on declining volume. It started off very nicely but the retest of the ORH turned into a retracement so I bailed.
5 comments:
Hi Jamie,
How did you usually enter for flags like DRYS? Break of bull flag or break of prior bar high? Am I right to say you place the Fibonacci this way as ORH has already been taken out?
NVDA: At the point you are watching,how do you tell the retest of the ORH has turned into a retracement?
Thanks,
YR
And one more question on NVDA. The first 2 bars carved out longer upper tails and the trigger bar is a doji. no problems with that?
YR
YR,
For bull flag, if price does not breach rising 5 ema, you can enter on break of NR7 doji hammer. I had a slightly late entry because I was busy with other things.
Trying to apply Fibs in a consistent manner but still trying to find my way with Fibs so it's a work in progress.
Normally, a retest would observe the ORH as support within a few cents on a $30.00 stock.
Agree NVDA had caveats but was holding the 5 ema on closing basis on 5 minute timeframe and felt like a coiled spring on the 15 min. timeframe.
DRYS? Hey that looks familiar! Jamie, it's me Andrew, thanks for emailing me the DRYS fib retracement from Monday. I studied it carefully and now I'm ready to apply it to a real trade. Thanks again.
Welcome Andrew - Good luck with the real trade, hope it's a winner!
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