Late entries on these commodity plays, but better late with some sort of trigger, than miss the whole thing.ABX - I waited until price closed below S2 (red line). Took a partial as price approached whole $ number. I kept a safe stop above the inside bar following my partial. Eventually, I tightened it above the WR green bar.
I missed the best part of this trade because of that sloppy consolidation following the initial decisive move lower. Then it consolidated midway setting a low risk entry point but I wasn't there at the right time. Jeez, finally I took a chance in the afternoon on a lame setup following an inside red bar.
ESRX, as I mentioned yesterday, is good for C&H patterns. This is an inverted C&H coming off a top. As the handle formed I saw two IBs, the second of which was a hanging man, so I entered early. It didn't move fast and vertical like a regular C&H, but by the EOD, it got the job done. The target was 100% Fib extension from the high of the cup to the base. Move stop after each significant trending stick in the direction of the trade, in this case WR red bars)
10 comments:
There was definitely plenty of downward moving stocks today but hard to find entries. I wanted to short POT but it went down too fast. I settled on ACI's bearish pennant (4/15-7/15) and that worked out pretty good although slow out of the gate.
Nice the ESRX early entry! MS was another inverted C&H that worked for me today. Although it barely touched the 100% extension from the low of the cup. Anyway, the advantage of working with a "more or less" fixed WL is that one gets to learn how the different stocks react to those key fib levels.
Thanks for sharing the charts!
Rick looks like NR7 - inside is your trigger bar. Once it took out support from the early swing low, things really picked up. Nice work!
Anarco, I find that these inverted C&H tops need a lot more patience because of consolidations when price meets support of MAs.
SOHU formed yet another (inverse) C&H, I think you may need to add it to your C&H watch list. Thats 3 C&Hs in 6 days and today was the most profitable one out of the 3. Unfortunately I wasn't watching SOHU today.
Thanks Dave,
I did add SOHU to my WL yesterday. I missed it today as well. That was some move. Looks like 300% Fib extension.
Jamie,
The mid-day or late entry is a common situation for me. Like today, I finally got a chance to trade just after lunch. Was looking at NOV, ABX, WAT and BP. Went with WAT breaking down thru 55.50. NOV, WAT and BP all had great looking daily charts for shorts, and all had nice down moves into the close.
Nice work Jim,
I guess the midday consolidation period is a good time to scope out afternoon candidates.
Some nice moves and good trades Jamie.
I settled on KGC, TCK AND WERN (all 15 mins) which suited my style of trading.
Nice work Traderam. It's nice when stocks keep moving in the same direction all day.
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