Jul 11, 2007

CMC - Long

CMC offered an interesting setup today as I first saw my entry candle on the 10-min chart, but the high/low spread and the target price was not at least 1R. So, I looked at the 5-min chart, saw a nice candle with a .13 spread (as opposed to .30) and took the trade for a very nice gain. You'd think I'd reward myself with something nice... instead, I had to cut my day early to get a wisdom tooth pulled. So, I'm writing this post with one-half of my mouth numb - sorry for the drool. Here's the trade:

  • Placed fib. lines from first bar low to high
  • Priced retraced 100% (which I didn't like) then went back up above the 38% level in the same candle (10am candle, 5-min). However, volume was not 1.25x the previous candle so I didn't look to enter here
  • Switching back and forth from the 5 and 10-min chart I noticed a hammer forming on the 10 with nice volume behind it. But, as I mentioned before, I didn't like the high/low spread
  • So, I looked at the 5-min chart and decided to enter long above the 10:05 candle high (dragonfly doji)
  • Since I really entered based on the 10am, 10-min candle... I was using the 10-min chart for my exit
  • I needed to get ready for the dentist and exited during the 11:40 candle (10-min chart)


I probably made this post sound confusing... but basically, I saw my signal on the 10 and bought on the 5.

1 comment:

Anonymous said...

Excellent job of dropping down to the 5-min for a better entry.

Sorry about the teeth; hopefully you at least received some painkillers or N2O. :)