Tuesday, October 07, 2008

Choppy Day - Amgen, Inc. (Public, NASDAQ:AMGN)

I had the wrong mindset going into the session, anticipating continuation following yesterday's late day rally. Unfortunately, that didn't happen and we chopped around most of the morning with no direction. A few stop outs and small wins was the theme of the day. Finally, AMGN presented a low risk opportunity.

On the 1 minute chart below, I entered on a tight NR consolidation break down. I liked the proximity to all the MAs above price. As you can see the big green hammer prevented this entry from seeing a big profit. That stop was in staying with the theme of the day, but after a retest of the entry zone, we got a small bear flag which triggered a second entry that finally extended nicely.

5 comments:

yr said...

Jamie,
Can u have a look at FSLR? Would a break of 135 at around 2.55pm be a good entry pt? If not, where would be a low risk entry pt in your opinion? Thanks

Yr

Jamie said...

YR,

The thing I don't like about that entry, is that on 5 min. chart you have several (3 or more) successive red sticks prior to the break at $135. I would prefer if price consolidates at the base after a big move into it. I wouldn't take that trade because my trading rules say don't enter after three successive sticks in one direction.

I prefer the ENER chart today. I trade pairs and FSLR is paired with ENER in my WL. I narrowly missed the opportune entry on ENER and had to pass, but it was sweet.

Tyler said...

Jamie,

Great trade today! How did you come to the decision to take your partials when you did? It looks like you took partial when it printed a green hammer on the 1 minute, but I wanted to be sure.

My entries are getting better, but I am having a tough time with exits as well as targets. I have been trying to draw fib extensions, but I think I need to reread your posts.

Your insight is always appreciated.

Thanks,
Tyler

Jamie said...

Thanks Tyler,

The first exit was the intraday pivot point S1 (thin blue line). The second exit was as price approached the whole $ number.

You can plot intraday pivots in esignal by right clicking on the chart - select formulas: pivots: pivotpointall.efs. This is an easy way to find support/resistance zones.

Tyler said...

Jamie,

Thanks. I did not have Pivots on my 1 minute chart, so I think that will help and I just figured out how to scale price only so I don't have to adjust each chart, which is why I never had Pivots on there in the first place I think.

Thanks,
Tyler