We talked about shorting HANS on
Monday. We said we wanted to short HANS on the next test of support at $37.00. HANS tested $37.00 three times before breaking down. The first chart is 1 min. The first test swoons from far away so we do nothing because price will consolidate and we want to hold out for a better setup. The second test holds our number and bounces. The third test carves out a NR which is perfect for a low risk entry. Cover when price fails to hold S2.
Price retraces 62% of the move from the ORH to the morning swing low. It fails to close above the 20 EMA and carves out an inverted hammer. Short as price takes out inverted hammer. Partial at the whole $ number on a huge volume spike which marks the end of the move for now. Still think that this one is going lower.
We talked about shorting HANS on Monday. We said we wanted to short HANS on the next test of support at $37.00. HANS tested $37.00 three times before breaking down. The first chart is 1 min. The first test swoons from far away so we do nothing because price will consolidate and we want to hold out for a better setup. The second test holds our number and bounces. The third test carves out a NR which is perfect for a low risk entry. Cover when price fails to hold S2.
Price retraces 62% of the move from the ORH to the morning swing low. It fails to close above the 20 EMA and carves out an inverted hammer. Short as price takes out inverted hammer. Partial at the whole $ number on a huge volume spike which marks the end of the move for now. Still think that this one is going lower.
7 comments:
Jamie,
Good trade on HANS. I saw the first 2 points of test, but missed the 3rd one. But one thing that bugged me was the S1 pivot level at $36.84 is quite close to entry point. Any concern this may provide support?
I was observing AMZN and would like your advice on which is a better entry:
-There is a PP at $73.25. Short on break of that at 10.20ET bar. But this breakout bar is wide
-break of low of 3/15 bar, which is an IB. But this is again quite near PP of $73.25
In short, how do we plan entry for breakout plays if there is PP or S1/R1 etc nearby?
THanks,
YR
YR,
Esignal has PP at $73.00. I would short IB. If price takes out a PP by a small amount and then takes it back, you have to fold. See how I traded HANS scalp.
If it takes out the PP by a large amount, you can hang on for a retest. See my second trade on HANS.
Hey guys, trying to follow along here. I am looking at AMZN and I am a little confused about your reference to IB.
"break of low of 3/15 bar, which is an IB".
IB is inside bar correct? Do you mean break of low of 2/15 bar or am I way off? If so, what are you talking about.
FYI I see the pivot at 73.05.
Forget above comment.. was looking at 10min.
Your right about PP at $73.05. The main obstacle on this setup is actually the previous day lows which line up with 2nd bar low. After that it's just a matter watching price as it test the PPs.
Thanks Jamie.
Just to clarify when I said PP, i meant points where price pivot off, not the S1/R1 etc. I got $73.25 level as that is the point where price bounced off a few times on Wed and is also the 2/15 low.
Your HANS scalp...was that the one on 25/3?
YR
YR,
Okay, I understand what you meant and that was the main obstacle. So if price stalled at the previous day support, you know what to do. Shorting the IB would give you plenty of room to scratch the trade in the event of a failure.
The HANS scalp in this post was from yesterday 27/03.
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