RIMM was the first trade of the day. I saw an IB on declining volume with no overlapping bodies in close proximity to the rising 5 period ema. The only caveat was R2 and the round number $120.00 just overhead. The real reason this trade failed was Fed speak - Bernanke telling congress that the U.S. would fall into recession later in the year. I had contemplated not trading during the congress economic session. Should listen to my inner voice next time.
HANS - An obvious setup - morning star reversal pattern at the base of the early swing low and yesterday's ORH.
The first AAPL chart is the 5 minute timeframe. There was early strength followed by an inverse C&H. The handle was choppy and I was still stinging from the RIMM loss, so I decided to pass on the setup. Too Bad.
About two hours later, I got a second chance in the form of a bear flag. Price quickly fell back to support at $146.00. Price has a memory and so do I, $146.00 is where I went long yesterday. I covered and went long. At first price started going against me ( oh, where's my stop? - decided to give it 30 cents), but quickly snapped back (whew). Took a partial after a 1 pt. gain.
The 15 min. chart shows a wider view of the base at $146.00.
AH both RIMM and AAPL are trading up on RIMM's earnings beat and guidance.
6 comments:
Hi,
AAPL, would your bear flag short be the open of the bar after the blue line?
I was nauseous for two hours after my bad FSLR trade.
John,
If you look at 1 min. chart 14:28 EST, you see that it printed four small green sticks on the edge of the bear flag. The 14:28 bar is WR and red. I released my sell market when the red candle swooned out of the flag.
I have the 1,5 and 15 min. charts on my screen at the same time. The lower timeframes help me time the entry.
Rick,
My dog keeps me in check when I'm making too much of a bad trade. She's very sensitive and doesn't like it when I make too much noise.
Do you happen to see a C&H pattern on HANS 10:30 through 1:30?
If not can you explain why you passed this up as a C&H play.
I came to realize that most successful C&H patterns have to have a meaningful base like the AAPL inverse C&H which lines up with the ORH for example. I saw the HANS C&H but it didn't have a meaningful base so I exited the trade.
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