Jul 12, 2007

SWIM - Long

If it's good enough for King Jamie it's good enough for me. I am now going to look at the 15-min chart for my exit regardless of what timeframe I enter on. It's not that I haven't thought about this before, but now I'm going to try to stick to it and make it a routine. It worked well for me today with SWIM... here's the trade on the 10-min chart:

  • Placed fibs. from first bar low to high (strong first bar)
  • Price retraced and bounced of the 50% level (never fell below, bullish sign)
  • Entered on break of 10:10 bar as it closed strong above the 38% level
  • Exited off the 15-min chart when priced closed below the low of the 3:15 candle (also below the 5ema)
10-min

15-min

8 comments:

Bigfish said...

Hey man, WHAT'S UP?

Nice trade on SWIM today, I had my eye on it as well as numerous others today(today was like shooting at fish in a barrel!)
Good to see you back...hope your vaca was awesome.
Keep up the great work!

Bigfish

Jamie said...

SWIM - Sweet!

Anonymous said...

great trade and great blog - is the 38% level critical ? so if a pullback reverses to/beyond the 38% fib level that implies it's chances to continue the reversal from the pullback are much better ?? so if a stock pulls back to the 61 or 70% level we should wait until it reverses the pullback to the 38 % level is reached for better odds even if the candles are giving bullish signals ?

Tom T. said...

I think if you look at the 15-min chart you will see a nice hammer candle on bar 3 for SWIM. I forget to switch back between 10 min and 15 min charts to see if a potential entry point lookd good on either chart.

OONR7 said...

@bigfish: thanks man, haven't seen you in awhile either. I'm actually still in the states, but I'm trading this week and next.

@anon: glad you like the blog and you certainly seem to be paying attention. For me, the 38% and 61.8% levels are very important. If a stock gaps up and pulls back beyond the 38 level, it doesn't necessarily mean it will fail, but if it doesn't bounce back up from the 61.8 level there is a good chance of failure. Key thing for me is to wait for price to break back up above the 38% level. SWIM was almost a gimmie stock for me. It never traded below the 50% level and that first bar was very bullish. Just a matter of waiting for an entry.

@jamie: thank you, your majesty :)

@tom t: while the 3rd bar was a nice hammer, it wasn't close enough to the 5ema and didn't have the volume I look for. I would not have entered based on that candle.

jason said...

OONR7: Great trade! Do you remember on which scanner you found SWIM? Good day my friend.

JJ2000426 said...

SWC had a very nice rally today. This is a great entry for this incredible bullish stock. It can be compared to PCU 4 years ago. Both return 2000% (20 folds) in just 4 years. I have made a very strong case for SWC super bull. Do your own DD on palladium.

Look at this perfect chart

Google keyword "palla lunar" (one word no space). And follow the Russian enigma!

OONR7 said...

jason... it was definitely on my IB top gainers list that I pulled at around 9:50 or so.