A key to these nice setups is to look for range contraction in an active market and at appropriate zones on the daily chart. BIDU had broken above a key pivot level on the daily chart (bottom) and then contracted for a couple of days. Today BIDU was very active (hitting my intraday scanner) in early trading and then setup range contraction intraday (symmetrical triangle, penant). The setup led to 3 WR 15min bars (upper chart), plus a tad more. An aggressive trader might have entered earlier based on the daily setup.
6 comments:
Nice work Jim,
The Chinese internet space is ripping, and BIDU's leading the way.
Cool trade Jim!
I have been forgetting to do the nightly "contraction scans" and this is certainly a great reminder.
Thanks guys. Much harder to find good setups today (Tues).
I had half an eye on POT (per Jamie's recent comments). The small gap up action faked me out and I did not participate short. The POT daily has 4 days of sideways action (several doji-like candles) and is setting up for a move.
Jim,
POT is one of my favorite stocks to short these days. I took the trade in POT as I have familiarized myself with this yoyo setup which matures after a series of lower highs culminating in price/volume contraction. CNQ was good too. Check out MOS 15 min. H&S top forming.
Jamie,
Yes, I see that. (MOS) price and volume are contracting in the right shoulder. Overall market is extended with ~7 days up - potential hanging man.
Jim,
SPY has a red hanging man. Tech hanging in with AAPL extending to $158-9 in after hours on earnings beat.
Post a Comment