RIMM from the WL formed a C&H base. Cautious trading ahead of the FED. I waited until price took out the topping shadow and the round $ number $125.00. Low volume as the handle formed led to price and volume expansion on the BO. I took a partial after 3 consecutive WRBs and I was stopped out a while later as the markets started to sell off late in the session.
FWLT from my WL and a HCPG pick, gapped down and carved out an IB that closed at the base of the ORL and just under S2. My target was the daily reaction swing high from early April. Since the market was so weak, I took a partial at that level and moved stop to BE. Didn't get much more out of it.
RIMM from the WL formed a C&H base. Cautious trading ahead of the FED. I waited until price took out the topping shadow and the round $ number $125.00. Low volume as the handle formed led to price and volume expansion on the BO. I took a partial after 3 consecutive WRBs and I was stopped out a while later as the markets started to sell off late in the session.
FWLT from my WL and a HCPG pick, gapped down and carved out an IB that closed at the base of the ORL and just under S2. My target was the daily reaction swing high from early April. Since the market was so weak, I took a partial at that level and moved stop to BE. Didn't get much more out of it.
17 comments:
Hi Jamie,
I'm from Quebec City !!
I follow your blog for about 2 months and I read almost all your posts. You seem to be a great trader.
I saw the FWLT inside bar this morning but I didn't play it. One of the reasons is that it had just one inside bar and the price didn't consolidate too much. In this case (FWLT trade) where do you set your stops ?? The 2/15 is very wide and a stop above this bar is too far from the entry point for me. The IB closed under S2 but the 3/15 went above S2 giving less power at S2.
Thanks !
Jamie,
Another stop question. Did you use the low of the prior bar to the breakout as the stop?
Does it bother you that the prior bar is a wide spinning top and that R2 looming above?
Thanks!
Congrats on your trades today Jamie! It is very useful to me to see how you play these choppy markets.
I have a question regarding the RIMM trade based on your chart annotations: You entered when the 14:15 bar broke the high of the previous bar, but in fact the 14:00 bar was the one that broke the top of the cup. What made you wait for another extra bar? In looking at the 5min chart, I can see that the 14:20 bar (the one that broke the top) was a nice bullish one with cool volume.
Of course your entry is a beaut because as well in the 5min with 2 inside bars. But I just wonder what was your thought process at the time you decided to wait.
Thanks in advance!
anarco
Above referencing the RIMM trade
I was just reviewing the RIMM 5min chart and I realized that my description above is incorrect
:-(
Good points Fred.
Salut Fred,
If you look at the 5 min. chart of FWLT, you will notice that it tagged $66.75 5 times before breaking down. I used that last 5 min. as my stop. So that would be the entry bar on the 15 min. chart. I have 4 timeframes on my screen, so after spotting it on the 15 min., I like to look at the lower timeframes to get a good feel for what is going on. I felt that after 5 tags, if breaks, it's over. And that's exactly what happened as the trade never went into the red.
Nice town, I have visited many times!
Anon,
R2 bothered me, yes, but the stop didn't because I kept it on a short leash. I used my C&H base plus 5 cents as my stop. If you look at 1 or 3 min. timeframe you will see that it makes sense given the false start and sharp pullback. After all that, it's either going or it's not.
Anarco,
I think this probably addresses your concerns as well. Yesterday I had a number of false breakouts. After a while, those become costly, so today I was cautious.
Looks like your pivot points are not exactly like me. S2 is 66,73 here and the 2/15 didn't close below S2.
S2on Esignal is 66.83 and 2/15 closed one penny below.
I use QuoteTracker. The manner of calculating the pivot points must differ a bit. Looks like they are not very very accurate if each broker or trading platform don't use the same equation.
Fred,
I used to use QT with a data feed from IB. Problems with charts derived from the delays in the feeds, so sometimes the charts were off. Esignal more accurate.
Basic Pivot Point Formula
P = (H + L + C) / 3
R1 = (P x 2) - L
S1 = (P x 2) - H
S2 = P - (R1 - S1)
R2 = P + (R1 - S1)
Where P= pivot point; H = high of the day; L = low of the day; C = close; R = resistance; and S= support. Use previous day prices.
Fred. Saw the same thing in QT. Clear the current day of data and backfill. It now shows up at 66.8267
Shitty it doesn't work the first time!
QuoteTracker works well for me. When I check FWLT I see that it tagged 66.75$ 5 times.
5 times !!!
My pivot points is at 66,73$ ... looks like a little support for me and very close to 66,75$
Anymay... no problems.
Thanks Jamie !
Fred,
Try back filling in QT as Anon recommends.
Hi Jamie,
Back filling didn't change the Pivot points. If you look at the action around my pivot points, it looks good.
Anyway, the setup for FWLT was there, pivot points or not. Great trade Jamie !
http://img301.imageshack.us/my.php?image=fwltnm4.gif
Thanks
Fred,
Okay, I see your image and it works in the context of resistance. Not sure why there's a 10 cent difference in the PP.
Another good trade in FWLT set up today. I will post the chart later tonight.
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