Friday, October 23, 2009
Failure of Daily Setup - AGU
AGU has been on my WL since I traded the BO trend day a few days ago (from scanners). Coming into today it appeared to have a daily long setup on/at support. It gapped down (profit warning) and formed a bearish intraday pattern right at the daily support level. Typically the failure of a setup leads to a significant move in the opposite direction.
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5 comments:
Hi Jim,
I had almost the same trade in AGU. Entry was same. Took partial where you took but I covered remaining 6 candles after the partial when it formed 2 bullish candles and their high was taken out. Any reasons why I should not have exited my final position there? Thanks
Day Tradr,
I missed this trade, but on my chart, the high of the first consolidation bar wasn't taken out.
This consolidation level lines up with Monday's BO point so you probably want to set your stop just above last Friday's high. Or even let it go back up to whole $ level if you want to stay in the trade.
Hey Day Tradr,
In addition to Jamie's comments concerning the consolidation immediately following our partial bar, I would add that your exit (14th bar) was made during a 15min bar which did not close above the 5ema. I typically follow a trade very closely until I take a partial. Then I will often only check it at the completion of each 15min bar. A 'reversal bar' at the close of a 15min bar is a more reliable exit signal and will usually take-out the 5ema.
BTW: Since I also do consulting work during portions of the day, it is easier for me to not follow a trade so closely. In this case, that 'less focused' approach was an advantage. Other times, it may work against me.
AGU had another good short setup today.
Thanks Jamie and Jim. Appreciate your response. Been faked out many times by these intra-bar protrusion above/ below 5 EMA. Do you usually wait for the candle that closes above 5 EMA to be taken out?
AGU had a very nice entry. Hope you guys caught some down move in AMGN too.
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