TWB was an earnings gap from the Briefing.com list. It had a wide opening range, followed by a hammer reversal and a lot of backing and filling. Eventually I spotted, a bearish flag formation as price and the down sloping 5 period ema came together. The flag culminates with NR7, the perfect trigger for price expansion.
PTRY, also from the Briefing.com list, was pointed out to me by Jamie Hodge of Trade-Ideas. I didn't trade this one, he did. But I wanted to post it in all its beauty because it's a perfect example of the opening range breakout generated from our bread and butter setup "NRIBs" (narrow range inside bars) on declining volume.
I'm keeping TWB on the focus list for tomorrow, looking for continuation. Next support level on the long term chart is $15.00, so there's still a lot of room.
14 comments:
Wonderful!. I had 12 gap downs from premkt with ptry rah wdfc the best with doji's or IB's, and the rest reversals.
Jamie,
Can you help me take a look at my BBBY setup yesterday? On 15min, there was a nice consolidation between 12.45pm ET to 2.15pm, forming a descending triangle and having bearish moving averages crossover and pivot level just overhead.
I went short at 2.20pm 5 min bar, stop above prior 15min bar high and first target $29.25 (prior day intraday support). While it did move slightly, movement was limited to sideways even though market was selling off. There were no nearby pivot level supporting it, so I wonder why this trade failed. I exited with breakeven.
Anything else which you might have spotted?
Thanks,
YR
On TWB did you get stopped out after you partial? Looks like you moved your stop to 1:15 bar high. Is this correct?
Also Im guessing your second entry was a break of 18.50 mark?
Hi Jamie,
Great trades as usual.
I am curious, can you tell me on average how many trades a day you take, and what % are successful?
Thanks,
Formerly ADD Trader
http://addtrader.wordpress.com
YR,
The BBBY setup on Thursday was low grade. Once the gap has been filled and price has taken out the 20/50 MAs on a closing basis, it's over.
It looks to me that by the time you entered, the stock had already retraced more than 38% of the thrust up from the ORL. So the potential was limited. How much more is it going to retrace 50-62% max.
The best advice I can give you is to elaborate a set of trading rules and check lists for each type of setup you want to enter.
For example, when trading gaps, it's easier to trade in the direction of the gap. Probabilities, of success are better for stocks that observe the previous day's high/low as support/resistance. That would be a trading rule. If the gapper stock does not meet that parameter after the first 45 min. of trade, take it off the list.
That will shorten the list considerably, and help you eliminate low grade setups like this one. At least you didn't lose money, just time ;-)
Anon,
On TWB, I didn't get stopped out, I just exited. The trading range is small- about 50 cents, so the chance of a full retracement is far greater than on a wide trading range. In these types of situations, I've learned, to get out rather than keep a partial position open. If another opp comes along, I can always get back in.
Formerly ADD,
In general, it's hard to manage more than two trades simultaneously. However, on days like Friday, it's hard to pass up so many great opportunities. But, on average 3-5 trades per day.
Thanks J,
Your blog is the best!
-FAT
jamie do you give these setup during the trading day too?
Anon,
Not sure I understand the question. I give you the pre-market post, but during the trading day, I concentrate on trying to bank some coin for myself.
Are looking for a live chat room for day traders?
Thanks Jamie. Indeed, a pair of experienced eyes see trade setup differently. I had initially thought its a pretty nice setup, lol!
Would be great if you can if a post to share some of your personal trading rules for all to learn. Thanks!
YR
YR,
It would be great, I know. Time is precious and I don't have a lot of spare time these days because my father is sick. But hopefully, he will get better and I can devote more time to the blog.
Jamie,
Sorry to hear your dad is sick. Hope he is getting better and you take care too.
YR
Thanks YR
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