SWN was a HCPG trading list short at $44.00. I found a NR base, so I took the early entry. Little hiccup along the way, but managed to get back in. See my chart notes on the 1 minute time frame below.
RIMM was a late session bull flag long on the 1 minute timeframe. Late day bounce for the markets following a lengthy sideways chop. The choppiness which preceded the BO, means you want to look for solid setups, otherwise how can you trust them.
9 comments:
SWN - stud trading! ... way to get back in and step on its neck. really nice action.
Thanks QQQ,
The volume spikes put me on defense. Luckily, it paused long enough for me to get back in.
Nice. ACI is setting up a pennant but it sure feels like we should get a short-term bounce here with how oversold everything is.
i've been reading your blog for a few months, trying to get my feet wet and now i have a couple questions. the bull flag that formed, could you say one also formed at 1420-1425, why not jump in on that one? is the blue line that you drew, is that a resistance line you put in or is a support line from the day before that you drew? thanks for the great blog
Rick,
ACI and CNX have similar looking patterns. If they can't regain 50 MA, they will likely fall down.
Despite weakening oil, markets couldn't put together much of a bounce today. Still would like to get one of those days where we capitulate in the morning and rebound strong in the afternoon.
Emini futures down in AH - Asian markets down across the board.
Thanks Stiks,
The blue line was an attempt to locate the intraday pivot point. I like to enter on a three pivot point base. So the flag pole top hits the blue line and then forms a flag marked by the blue line segment.
I waited until the bar closed above the line segment but, yes you can enter in the $114.20-.25 area as price breaks out of the flag.
I wrote bull flag too high on the chart, so it looks like I'm referring to the second, looser flag, but in fact, we are referring to the same spot.
i see now. actually, i should have been more clear, but i was looking at the time 14:20-14:25 or so and it seemed to be a bull flag also. i was just thinking, if you are watching this in real time, it has to be hard to determine when to pull the trigger on a flag and when not to. but, i see that according to what you said, three pivot points, bull flag formation,wait for a close above that line for confirmation, and it seems like an ideal time to buy. the flag i referred to does not close above, but just touches (and i believe) makes one of your pivot points you speak of, no confirmation though as to a break out. your flag formation and the following close above make more sense. as for where you wrote bull flag, that did not throw me off because of the arrow that you drew. thanks for your help. i realize now how many charts i need to go through, before i can start understanding and picking up in real time, what will happen.
Stiks,
The area you describe at 2:15 does not have a big volume thrust, so I don't consider this to be a strong enough flag pole. Compare the difference between the two and you will see that the one I traded was almost vertical with volume spikes. Then look for the flag to form on declining or much lower volume. The price and volume contraction during the flag formation leads to price expansion.
i definitely see what you are talking about. thanks for the help. i have to remember to keep on eye on the volume as well.
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