Thursday night I posted the above chart on the blog with support/resistance lines in blue and said if we get a bounce, there was a clear path back up to the 50% Fib. retracement.What happened on Friday was a fast move to the lowest support level at $96.00. I checked Briefing.com to see if there was any bad news out on the stock, but couldn't find anything. Price stopped at support and reversed. The first target is back up to previous day support (former support acts as resistance) and the second target is the ORH.
Here's how I traded it. If you map out all the obvious S/R levels before hand, you will have confidence taking the trade when price comes into those levels.
3 comments:
Jamie,
In the AAPL trade and similar other trades when the stock bounces of a support, do you wait for the price to move above any EMA on the 1 min. chart?
Jamie,
Sweet trade! I also traded AAPL, but my inexperience shows when I compare my chart to yours. I am slowly getting better thanks to you and your blog.
Also, I am sometimes afraid to trade against moving averages, but you seem to do it so well. Any suggestions that you can offer that make this sort of trade successful?
Thanks,
Tyler
Susan/Tyler,
I can't say for sure where the MAs should be at the correct entry point. Wait for narrow range consolidation and buy above the highest point of the narrow range for long entries as I did here. This NR sets the entry point and the stop.
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