NT gapped up but immediately succumbed to weakness. It made a decisive move lower, briefly found support at the previous day high and formed a bear flag. Short after price closes below support of the black line and cover at S2 on a huge volume spike.
JAVA was a more textbook dummy setup (
Trader-X style). I saw two NRIBs just above the base of the ORL. I scaled in on the break of the NRIBs and loaded up on the break of the ORL. Now, I know that the down sloping 5 period SMA was a little distance from the execution but I felt that the 2 NRIBs made up for that caveat.
NT gapped up but immediately succumbed to weakness. It made a decisive move lower, briefly found support at the previous day high and formed a bear flag. Short after price closes below support of the black line and cover at S2 on a huge volume spike.
JAVA was a more textbook dummy setup (Trader-X style). I saw two NRIBs just above the base of the ORL. I scaled in on the break of the NRIBs and loaded up on the break of the ORL. Now, I know that the down sloping 5 period SMA was a little distance from the execution but I felt that the 2 NRIBs made up for that caveat.
12 comments:
"Short after price closes below support of the black line"
Do you mean support of the blue line of the bear flag because bars 2,3,4 broke the black line (yesterdays high)
RZ,
Bars 2 and 3 breached the black line but not on a closing basis. Stocks often find support at the previous day high and reverse. So I just wanted to make sure that price closed below the black line before executing the short. The blue line designates the flag. On the 5 min. chart you can see that the bear flag is breached and at 10:25 it carves out a NRB which closes below the black line. That was my trigger bar.
james you are officially the man... thanks for sharing with all the peons !
Did you use the 10:25 bar high on the 5min chart as a stop or the high of the 4/15 bar on the 15 min chart?
Do you generally look at the 15min chart for promising patterns and then time your entry off of the 5min?
And yes, Teddy makes a good point :)
Thanks Teddy
RZ,
I usually use 15 min. bar for stops and I did on both these trades today.
It depends on the pattern. Flags are easier to spot on the lower time frame. But I have 4 time frames on the screen when I take an entry. I want to make sure the trade makes sense from every angle.
Good trades Jamie !
How many screens and computer do you have ? How many charts do you have on each screen ?
I wonder if it is possible to post a screen shot of your setup ?
Thanks !
What are the 4 time frames you use? 1,5,15 and ....?
RZ,
Those are the time frames I use. I use the moving average xover on the 1
as my alert and once it xovers on the
5 , I enter. I keep the 15 open to get a broader view of the market. And I make sure I check out Jamie's blog since he has so many helpful tips....
Quentin
RZ,
1,5,15, and daily. The daily helps in identifying multi-day patterns, longer term price pivots, typical daily ranges, etc.
Some nice looking setups out there for Monday.
DECK, IBM,CRM -bull flag
X, JOYG, ILMN, APOL, ANR -potential long breakouts.
ABX looks good for a short below 37.
Hopefully some of these will pan out.
Thanks for the focus list Alex. CRM and ANR did do well today.
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