DUG - Ultrashort Oil & Gas set up a perfect C&H base and break.Characteristics of C&H pattern -
- Handle should be shallow - preference to patterns that retrace 38% or less;
- Handle - price and volume contraction as handle develops;
- BO - Price and volume expansion on the BO. No need for a retest. If the handle is properly formed, price and volume should expand quickly on the BO. That's not to say that you should scratch the patterns that retest. It just means that a well formed handle has had plenty of time to consolidate, so no real need to consolidate after the BO.
- Expected Measured Move - 100% from the low of the cup to the base of the handle.
DRYS - I traded this one as an inverse C&H pattern. Took a partial on a huge volume spike and held balance to target - (100% Fib. extension of the ORH to the base).
JOYG another play on lower oil. Missed the initial BO, but couldn't resist this NRIB (NR7).Plus a bonus scalp into the close.
6 comments:
Nice trade on the DRYS!! - I took it for a ride as well
Thanks HIDT,
Been waiting a while for DRYS to decide which way it was going.
I took the same DRYS trade as well. I exited too quick at 69, but I wasn't expecting energy stocks to be so linear while the market was chopping around so much. I almost shorted POT too but there wasn't enough volume contraction in the morning bear flag.
Rick,
I almost shorted AGU. It's hard to catch all the moves when everything starts to break around the same time. I wasn't expecting so much action on a Monday.
Hey Jamie,
Where was your initial stop the JOYG scalp? Was it the previous high ~61.51?
I also see you choose to enter on a break of the $66.20 base, but what about the $66.30 base?
Thanks for your input!
Hey PDT,
I used the NRIB as my stop. If you look at 1 minute chart, you'll see B&B set up. No reason to have stop higher than 20 EMA/1 min.
No consolidation at $66.30. These scalp trades work best when you enter on consolidation BO. Look at 1 minute chart and see NRIB just above 66.20. Also $66.20 was base long at 2:19 EST on mini C&H. So real base in my mind is $66.20.
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