Today's Trades - Mélange of Setups

X and CNQ were two B&B setups that I had scoped out last night. I prefer to have a clean setup with an inside bar at the base of the whole $ number, but we have to take what we get and work around it. X breached the base on the OR. The bar was bullish but left a long upper shadow so I had to wait until price could move above the shadow to be sure.

The details are highlighted on the 1 minute chart below. I took a partial on a shooting star and exit on a breach of the H&S top. I was hoping for a possible ambush trade after a 62% retrace of the thrust, but it never panned out.


CNQ was my second pick for a B&B trade, but oil/energy was just too weak. After testing the whole $ dollar, it carved out a star on the 1 min. and headed south. I shorted the break of the trendline, took a partial at the 62% extension and was stopped out on balance.

The NQ futures looked like they wanted to stage another rally -bars 4-6 printed 3 consecutive higher closes. After breaching yesterday's high, price consolidated. The shake out bar was soft because it had a long lower shadow. The follow up bar not bearish, so I decided to wait for a trendline break.

On the 1 minute chart below, you can see that I basically scratched that first attempt because I thought it was setting up a head fake. It turned out to be a retest of the trendline. Nevertheless, the follow on was range bound during the lunch time doldrums. After three attempts to break the midday trading range to the upside, NQ carved out 3 consecutive WRBs (with volume) to the lower end of the trading range. This is very bearish. Wait for price to consolidate the move and short.

The chart pattern on the 15 min. is an inverse C&H or a H&S top. Either way, on a measured move basis, the target is 100% from the top of the pattern to the BO point. As you can see from the chart, it executed perfectly.

I went long into the close, after NQ carved out a rounded bottom. Partial as price approaches 50 MA.




Susan,
This is how I would place my fibs for BTU. As you noted, the open is within yesterday's trading range, so the retracement lines go from the previous day low to high. Extension from previous day high to low. Nice aggressive entry after 3 inside bars. Another possible entry is at base of retracement zone. I would partial at previous day low because price is going to consolidate or retrace at support. Best to lock some in to be safe.