Thursday, November 06, 2008

Bear Flag - E-Mini S&P Futures

Futures gapped lower. Extend Fib. lines from the previous day high to the 15 minute ORL. Price fills the gap and reverses. After breaching the ORL, price forms a bear flag on declining volume. Enter as price breaches blue line segment or previous bar low. Initial stop is a few ticks above previous bar high (red line segment). Target was 50% extension. Took a partial at 38% extension.

BAC carved out NR7 at the base of the ORL. Enter on break of NR7. Place stop above previous bar high. Partial at half dollar and exit balance at 38% extension.

AAPL is testing first level support. If we reverse tomorrow, we have a clear path back up 50% retracement. I doubt it will be that easy, but keeping it on the Focus list just in case.

4 comments:

QQQBall said...

nice trading.

yr said...

jamie,
for ES, any reason why u target for 50% fib ext and not 61.8%?

Jamie said...

Thanks QQQ

Jamie said...

YR,

First level support (pivots from the past) was 910 which lines up perfectly with 50%. The 62% level didn't really line up with anything, so I chose the more realistic target.