After gapping up, DRYS consolidated in a flag pattern and I entered long. A second flag formed shortly after offering another opportunity to get long. Thought it might go to $84.00, but when it carved out a lower high, I decided to book my profit.The second flag area held as support twice intraday, but when price started trading in a narrow range just above it later in the session, I knew the next test would fail, so I took it short.
ATVI, from my WL set up a B&B just below R2. Since this stock is trading in the daily spot, I had a good feeling that it would extend at least 100% from the ORL to the base.
LEH carved out a NRIB at the support level (former resistance from Friday's trade). I partialled out as price tagged Friday's B&B level.
19 comments:
Guru,
Again, thx for your comments on my previous post. Looking forward to learning from your level 2 post.
you are really being modest when u say u have yet lot to learn. From your technical picture forcast, you are far more accurate than fast money crew or cramer or other so called pandits on cnbc. i have become the lifetime member of stockcharts.com and see every graph which you post almost everyday to gauage market movement next day.
Do you use any "leading" indicators during the day (intraday) which would help you guess the market movement?
I am confessing that I have gone through all your posts in the archive and felt so empowered that I started trading 5X than my regular day trading position. And as anyone would guess when u become greedy u loose..despite of being technicall right i was loosing because of fear loosing bigger in my last couple of days..I was hating myself for doing it. Would you post some of your loosing positions so naive people like me can learn how to loose it right...thanks again for the work u do.
u rock jammie.
shah
Thanks Shah,
If you have increased the number and/or size of your trades, I would suggest that you step back and take it one step at a time. The psychology of trading is just as important as the setups themselves.
This week is especially difficult due to triple witching options expiration. I am trading less. I won't be trading on Thursday at all because the day before OPEX is usually too tough. I can feel it already as today was very choppy.
Make sure the setup is meaningful on more than one timeframe ie. 15 min. and 5 or 15 and 3.
My leading indicators are price, volume, trend (higher highs and lows vs. lower highs and lower lows), and support/resistance.
Jamie - On ATVI you drew this bold blue line - at 35.70. Can you tell me what that line is based on? I deduced that it was a pivot line but my quotetracker chart is showing R2 at 35.8933 so I guess if you show R2 at a different point then maybe I have an issue with my datafeed? If the blue line is not R2 then can you explain where that line comes from - also on LEH I assmed those blue lines are not based on pivot points at 26 and 25.40 - It appears those lines come from connecting data points together in that instance - so I guess the issue for me is what are those blue lines based on - thanks, Tom
Jamie,
Thanks for the excellent blog. Love to read it everyday. I have learnt a lot from your blog and have been trying to trade NRIB's for the last few days. I was wondering how you create your watchlist? Also, how do you manage to see the NRIB's on the right time :)?
Tom,
The blue line on ATVI is nothing more than an intraday base or resistance for a B&B entry. R2 is in red. If ATVI retraces tomorrow, the blue line should act as support and might set up another entry.
For LEH the blue lines represent former resistance spots from my trade on Friday. Former resistance is supposed to act as support, but clearly LEH was breaking down so these lines help determine where I should enter and exit.
Hi Jamie,
On your Short trade on DRYS, you said when it started trading in a narrow range , you knew the next test would fail. Was there other hints or clue which gave you the signal to go short?
For LEH, there are 2 bars with long lower tails. Would you be concern these tails would provide support and that it is quite near your entry point?
THanks,
YR
Thanks Susan,
Finding NRIBs is the biggest challenge. I wish I had a scanner that alerted me each time one of my WL stocks carved out an IB.
I have an NR7 alert on the Trade-Ideas scanner. Sometimes the NR7 bars are NRIBs, so that is helpful.
I sort my WL by % change throughout the session and focus on the outliers. This helps to focus my attention on 10-15 stocks as opposed to 50-60. I keep going back to the same stocks over and over again all day long, waiting to find the perfect setup.
Also look for stocks to print NRIBs near, or on support/resistance and pivot points.
YR,
Usually the third test of support/resistance has the best chance of BO, so DRYS was coming in for the third test. Only take the trade if its sets up in a NR at, or close to the base. Both the 15 (NRIB) and 3 min. timeframes confirmed by bearish bias.
LEH carved out series of lower highs near support. Usually this leads to BO because clearly the bulls are weak. I was not too concerned with the lower tails as this could give me enough time to exit at BE.
jamie:
great stuff. Once you spot a setup and took the trade , do you then freely look for other set up. Or do you get hooked on your first trade. Or do you do both.
Do you put a hard stop right away on your first trade freeing you to look at other stocks, or do you keep looking at your first trade.
The reason i ask i get hooked on first trade (largely as NOT to loose( and end up losing time to look for other stock set up.
I saw DRYS much later because of that\
It would be great if you can tell us about tools like hoe many screens/how many windows open/ the whole operational set up that is..
Awesome Blog.
thx
Fast/early trades from lower timeframes require more attention than a NRIB on 15 min. For NASDAQ stocks I put a stop in right away, but for NYSE, I don't like to show my hand until my mental stop looks like it might be hit.
Two eyes on the trade I'm in, until it's comfortably in the green, then one eye on scanner and other charts.
Jamie you can use quotetracker with a narrow inside bar paintbar that would highlight the stocks setting up a NRIB.
I've started using it and it's a huge help.
"For NASDAQ stocks I put a stop in right away, but for NYSE, I don't like to show my hand until my mental stop looks like it might be hit."
Wow, I've never really thought about that. Do you really thing someone could manipulate a stock enough to hit ones' stop?
Why do you disregard this on NASDAQ, because of all the program trading?
OMG,
Beautiful 5 min chart
"Since this stock is trading in the daily spot"
Would you mind explaining what that means.
Anon: In another post you mentioned you read a book on L2. What was the name of the book?
PDT,
The daily spot is a stock trading at all time highs. After the BO of the base it's blue sky - no resistance. In bull markets these stocks can provide multiple waves in one day and are usually big winners. Refer to my post of MDR Saturday July 14, 2007. That was a daily spot beaut.
Anon,
Thanks for the tip on paint bars.
PDT,
NYSE Specialists take out stops for their own profit. I heard it from the horse's mouth.
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