Thursday, February 12, 2009

Opening Range Breakout





Traded NTAP, RIMM, POT long. NTAP and POT were sweet, RIMM was not.

9 comments:

Rick said...

I find that 50 is one of those strong psychological levels like 20 or 100.

Jamie said...

Rick,

I agree. Didn't want to fight the tape on it. I figured it needed to retrace to gain some traction.

JF David said...

I Shorted RIMM after 2 hanging man in 5min timeframe (break of the 13th candle). There was a RSI divergence, but the trade did not worked well.

RSI maybe a little too strong on the fourth candle top. Yesterday afternoon action was also maybe too strong for shorting this morning.

the 15 min timeframe is without a doubt, more reliable for those hanging man reversal trades.

Jamie said...

JF,

Yeah, I prefer to use 15 min. for spotting hanging man patterns. I spotted a hanging man on my NTAP trade 11:00 15 min. timeframe, but the RSI was very strong so I held on to my long position.

addtrader said...

Hi Jamie,

Could I get your comments (or maybe even a post) that goes into your scanning method a little more? Not how to find candidates, but once you have the list, how you "watch it". Meaning, do you just work from a set number of candidates each day? When you come across a potential set up, to you stop looking and just focus on it? Do you pay more attention closer the end of a 15 min period, or are you constantly looking at all times? Etc....?

Thanks,
Formerly ADD Trader

P.S. What is "Family Day"?

Jamie said...

Formerly ADD,

Not sure what family day is because here in Quebec we don't have FD. Everyone is working here, while the rest of the country is off.

RIMM and POT are on my usual suspects list. NTAP was a gapper from the pre-market scan. The usual suspects and sector lists, as well as gapper lists are sorted on % change. Focus on outliers initially and look for orderly price action in the OR or first half hour. Watch the key timeframes 3-5-15 and daily of potential candidates.

Do homework night before. Look at key sectors for strength/weakness. Look at post market for any charts of interest. Look at HCPG picks and key levels. Set alerts night before.

It's impossible to get all the setups in real time so focus on the outliers first. These usually hit the pavement running in the first 15-25 minutes. After that plenty of time to go back and review sectors, run more scans for NR7 intraday.

Markets are coiling and we have very narrow trading range at the moment. This means extensions are not as good as Q4, so important to take partials before giving it all back.

Jamie said...

ADD,

Also sign up for free nightly videos from John F. Carter. He trades futures, forex, gold and a few stocks, but his instinct is very good for when gold and few stocks are ready to rip. Might as well benefit from his experience.

DG said...

Hi Jamie,

I am an ardent reader of yours and learning a lot from you. But my inquiry is: maybe you should consider offering stock to trade (day trading) service for us, like the one you trade so that we can benefit from your expertise and I will be the first one to sign up. Or if this is too demanding for your sked, maybe a stock to trade every Tuesday or Thursday, will be fine too. I am just suggesting because ever since I encounter your blog almost a year ago, you have an excellent trade presentation, unlike those others. Yours is different.Very concise, brief, practical and easy to follow. Maybe if you will offer "stock to trade" at affordable and reasonable price, I am sure all your readers will subscribe!

Jamie said...

DG,

Thanks for the vote of confidence. It's hard to execute all the setups in a timely manner. I don't have time to post stock trades and manage my own trades at the same time.