ADSK - Short
Flatwallet asked me yesterday if I only trade hammers... and this was a portion of my reply:
"...if I see a hanging man after a long run up at a key resistance area, I will short the low of the hanging man..."
A great opportunity came up today to do just that in ADSK. Here's the trade:
- Placed fib. levels from first bar high to the third bar low
- Price initially gapped down then quickly started climbing towards the HOD (possible resistance)
- The 10:15 candle formed an inverted hammer with a long upper tail. A sign of a possible reversal
- The next candle was a hanging man with slightly increased volume and I shorted the stock on a break of this low
- Exited at the fib. ext after the increased volume at the OR low failed to generate a reversal (I did not manage this exit well)
I didn't like my exit as it never met the Trader X criteria. I should've waited to see if price took out the high of the 11:30 candle. I basically left .62 on the table. Nevertheless, I'm happy with the trade and anytime you can get out near the fib. ext. for a profit is a good thing.
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4 comments:
n7, nice move. Also go back 6 days 30" and put some longer term fibs//spt/rst. 5" 13 ema worked well as reversal 10:15 hangman/1pm reversal. Guess you could take a partial at $1, or 1.38@45, or 13/15" hammer. Clean!
Big Cojones on the entry ;)
bl... I love how I have to read your comments twice. lol
jamie... thanks. It's not my typical kind of trade, but I was looking to go short on this stock and didn't want to pass up what I thought was a very good entry on two weak candles at the OR. I was prepared to bolt immediately.
nr7, I know...you're not the only one. I do the same with my comments. Gotta love it! Check out Jaime.
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