Jun 22, 2007

RGC - Short

My scanner wasn't working this morning so I used IB's top gainers/losers list and found a lot of good opportunities. Here's my RGC trade:

  • Placed fib. levels from first bar high to low (very bearish first bar)
  • Priced retraced to the 61.8 fib. level and failed
  • Price then fell back down to the 38% level and caught a breather during the 10:15 candle
  • Entered short on break of 10:20 candle low (strong down bar with increased volume)
  • Exited on 12:25 candle high (nice Trader-X exit as I waited for a high above the 5ema to be broken)

You'll notice I followed every single step of my trading strategy.
 
EDIT: I was just looking over this chart and it doesn't show price broke the 10:20 candle low on the 10:25 candle. I was actually going to cancel the short order after it didn't take out the low, but... price dropped and the order was filled at 21.35 about :30 secs into the 10:30 candle. A bit fortunate, I guess.

7 comments:

E said...

Good trade! You mean "RGC - Short" in the title, right? ;-)
Have a great weekend..

OONR7 said...

lol... yes E, short. I can't tell how many times I have to go back and fix grammatical errors in my posts. Kinda embarrassing when it happens in the headline.
I'll blame it on my urge to quickly get information out to the readers... yeah, that's it.

bl said...

oonr7,
Looking at BIDU vs FCX, I see bidu breaks down the OR, retraces up to .62 and reverses. Fcx retracement stays with in the OR .5 .38 levels and breaks ouit. I'd say that would be a fair assesment to stay out/short, or go long based on quality of OR, retracements, candles, and volume(I don't look at that). Friday: bad trade on JBL 3/10' break of the 1/10". Others I saw:
smsi 11/15 usbe 20/15 4/5 sohu 6/5 fslr 5/15 fcsx 5/15 ifx -6/10 bhp -8/10 sbux -4/5

OONR7 said...

bl... that's a great assessment and exactly what I look for in chart patterns. FCX is the golden trade as it retraced to the 50% level on a gap up then formed a hammer on my entry bar with increased volume. BIDU was a countergap trade and it suckered me in the first time as I was not focused on the volume. The trade where I made good money in BIDU had a nice setup with great volume. I'm going to hold off on countergap trades and stick to trading the direction of the gap. I find the probabilities to be much high and it really does cut down on how many trades I'm keeping an eye on. I may resume countergap trades after the summer doldrums. Sorry about JBL, I checked out the chart and it looks like the 5ema was pretty far away. Is that what you think? Also, what's your trading style?

bl said...

oonr7,
Style: X Gap NR7 Gap fib candles. Premkt news and gap scans:
Looking at Fri naz gaps the only stocks in the nr7 Gap/fib style in the OR: sohu goog ebay nuan alth inpc. 4-8 are manageable in the 5 min chart. Looks like anything that retraces >.5 is a troubled long. >.62 watch out. breaks the OR quickly is doomed:mgm. How do you spot those failures and FADE them!?

Jamie said...

Just curious as to the stop on this entry. Thanks

OONR7 said...

@bl: with the fib. levels, what was once support could become resistance and vice versa. If a stock gaps up, falls well below the 61.8% fib. level (a failure)... then retraces back up to either the 50 or 61.8% level again... I look for a short entry at the 61.8% level with increased volume.

@jamie: my stop on this was on the opposite side of the entry candle... or 21.49 (which was just above the 38% fib. level as well)