I have been periodically trading CTRP from the short side. Following the earnings based run-up in August, I have been looking for another good short opportunity. The weekly chart below shows price range and volume contraction after the week of the earnings release. Given the weak market, I was anticipating a possible BO of the prior weekly low.
Below, the daily chart (left) and the 15min chart (right) show that weekly price pivot (PP) level. This morning price tested that level and then formed a 15min NRIB on that key level. The entry was against the NRIB. The fact that the NRIB formed below the opening range low (ORL) and near the down-sloping 5ema added confidence. The weakness in the overall market helped tremendously. I took a partial on what looked to be capitulation (vertical price move on high volume). I then trailed a stop and decided to hold the remaining position for an overnight trade. Closing at the extreme of the daily range (the low in this case) on heavy volume is a valid reason to hold a trade for potential overnight follow thru.
Below, the daily chart (left) and the 15min chart (right) show that weekly price pivot (PP) level. This morning price tested that level and then formed a 15min NRIB on that key level. The entry was against the NRIB. The fact that the NRIB formed below the opening range low (ORL) and near the down-sloping 5ema added confidence. The weakness in the overall market helped tremendously. I took a partial on what looked to be capitulation (vertical price move on high volume). I then trailed a stop and decided to hold the remaining position for an overnight trade. Closing at the extreme of the daily range (the low in this case) on heavy volume is a valid reason to hold a trade for potential overnight follow thru.
5 comments:
Awesome trading Jim!
I am saving this chart to my "cool charts" folder and I will be studying regularly. Thank you.
I also find interesting the three NR bars just before noon (9/15. 10/15, and 11/15) that caused the drop from $46 to $45.18 (S2).
Excellent trade Jim. Love to see how you use multiple timeframe in your trading.
Nice job Jim,
The break of $50.00 on Wednesday was very compelling on the lower timeframe as well. A 3 PP base inverse C&H type pattern.
Thanks guys.
Jamie - Absolutely, that was a beautiful setup. Unfortunately I was not available when the inverted C&H setup at $50. It was that action that drew my attention.
Jamie,
By the way, following a nice setup & move I used to think "I have missed the move and it will probably be days before this stock sets up again". I have made great progress in now thinking "this stock is moving and has high odds of good intra-day setups for the next several days". The difference in these two modes of thinking is very significant for day trading.
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