The first chart is a wide range 15 min. view of CELG. I map out all of the key S/R lines ahead of time. When I see a nice setup in close proximity to the S/R lines, I can easily execute the trade.After a strong opening range, price weakened and made a decisive move into the next support level. It consolidated this move sideways. My first entry was a short as price crossed support. It started out very nicely, but then I got fooled by two hammer reversal bars. It turned out to be just a retest of the former support which now acted as resistance. This lead to a bearish flag pattern allowing me to get back in. I booked some profit at the next support level and exited the balance at the lower level.
CROX was a low volatility BO from the depths of the gutter after a multi day swoon. I really liked the price and volume contraction which formed shortly after the tweezer bottom reversal bars. I did not trust longs today, so I exited as soon as price tagged the 32% Fib. retracement of the last leg down. I'm keeping CROX on the focus list for tomorrow because it's long due for a correction.
Today was really choppy with wild swings up and down. Needless to say, I had more than my usual share of stop outs. I'm managing this by reducing my usual risk in half.
5 comments:
Jamie,
The volume that came into SVVS today (see daily) looks interesting - 3 pushes down visible on the weekly at the potential end of big down move.
And, AMAT has held up like a champ in this market.
Jim,
SVVS looks like inverse H&S bottom on 15 minute.
AMAT holding well and JOYG.
It is really great how you spotted this: " ... volume contraction which formed shortly after the tweezer bottom reversal bars."
Nice trade!
Jamie,
Do you map out all the S/R lines when the trade trigger, or do you prepare for it before the market start? It seems like it takes alot of time to do it during the trading hours.
brandon
Brandon,
Forgot to mention that these are watch list stocks. So, yeah, I review them in the evening or during pre-market.
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