AAPL gapped up on the open and carved out a bullish green bar. The 2nd bar was almost inside (breach by a few cents). I entered long on a break of the whole $ number $135.00. I used the 5 min. timeframe below to set my stop (red line segment plus a few cents). I booked a partial profit after 3 WRBs on the 15 min.. This lined up nicely with the 62% Fib. extension of the previous day low to the ORH. I tightened the stop below the last WRB and exited the balance as price approached the next round $ number $140.00.
As you can see from the daily timeframe below, AAPL has carved out a bullish rounded base at the gap level. The next step will be a gap fill, but I'd like to see price consolidate before that happens, either with a couple of inside bars or a C&H pattern. But since this is AAPL, I won't be surprised if it just goes straight up.
AAPL gapped up on the open and carved out a bullish green bar. The 2nd bar was almost inside (breach by a few cents). I entered long on a break of the whole $ number $135.00. I used the 5 min. timeframe below to set my stop (red line segment plus a few cents). I booked a partial profit after 3 WRBs on the 15 min.. This lined up nicely with the 62% Fib. extension of the previous day low to the ORH. I tightened the stop below the last WRB and exited the balance as price approached the next round $ number $140.00.
As you can see from the daily timeframe below, AAPL has carved out a bullish rounded base at the gap level. The next step will be a gap fill, but I'd like to see price consolidate before that happens, either with a couple of inside bars or a C&H pattern. But since this is AAPL, I won't be surprised if it just goes straight up.
6 comments:
Really nice. Congrats Jamie!
BTW, can you synchronize your trend lines so all you charts show them and you do not have to re-draw them at the various time frames?
Thanks!
Thanks Anarco,
Yes, to synchronize, select a chart, right click, select style template, and save as default.
Good job Jamie.
Can you comment on the 3 WR bar rule in light of EQIX today? It gave 3-4 WR bars (15m) out of the gate, then consolidated just under $62. Coming out of that consol, I was uncertain as to how many WR bars to expect. In this case it gave plenty (~6 more WR bars before toppping), but what about in general when the consol is extended with respect to the OR H/L?
Jamie,
At 10am ET today was the existing home sales data. I think its quite a key data given the current focus. Usually with key data like this, would you be prepared to enter a setup minutes before the data release or minutes After the release (maybe knee jerk effect)? I know you did so with AAPL, but I wonder if you have any concerns or are better prepared in any area to counter this?
Thanks,
YR
Hey Jim,
I implemented the 3 WRB rule to take a partial profit because after 3 consecutive WRBs price is usually extended and very far away from the 5 period ema. Take the difference between price and the 5 period ema after 3 WRBs and ask yourself if you are willing to risk all of that money. If not take a partial and move stop below last WRB or trail it below 5 period ema.
I got caught after 4 WRBs on Thursday with V. It suddenly reversed and swooned. I was glad I had taken a partial after 3 WRBs. A WRB that closes on its high is not a true indicator of continuation and V is a good example of that.
YR,
Economic data is important. I always prefer to get it out of the way in pre-market.
I did have a trade on when the data came out - Long FAST on break of Thursday's high. Stop management is key when critical economic data comes in below street expectation.
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