Aug 29, 2007

SAFM - Upon further review

What I don't like doing is losing on a trade that I was up in and hit at least one of my initial price targets. So, after looking at SAFM from yesterday, there was something that really stuck out.
 
When price rises significantly after gapping down, if I get an entry signal, I need to play close attention to price action at the OR low as the stock may reverse.
 
Of course, the same logic would apply if I'm going long as well. Now, I've mentioned before that I usually do screenshots of 2-3 charts per day of either trades that I entered or missed and should've entered. This proves helpful because I can pretty much go back to these charts to see how certain patterns would have worked out in the past. Kinda like backtesting. So, after looking at previous charts, I did find other setups like SAFM that reacted similarly. Some also moved further down... but if I keep some shares (say 25%), I may be able to reap further rewards.
 
Here's the SAFM chart that looks like pop ups on steroids:

 

9 comments:

bl said...

Looks like it bounces off the 5ema. Don't know how consistent that would be be for a trigger. Like the 5ema on a 15" chart.

Flatwallet said...

Good Point. I generally discard those as I feel uncomfortable with them. I seen too many reverse.

OONR7 said...

bl... not sure I follow you regarding the 5ema.

fw: yeah, I would need to see either price moving below the 61.8% and then retrace and drop or consolidation along the 50% or 61.8% level (I'm specifically looking at the SAFM chart). While I don't discard this overall scenario... I am a bit hesitant to enter unless I feel very confident it makes a move in my direction - which it did, just not enough :)
On days when there's limited selection, sometimes you need to make even a little money. By cashing in at the ORL (or most of my shares) I hope to do just that.

Tom T. said...

OONR7 - Are you having problems with Prophet.net today? I just called their support and they said they would look into my issue (no results based on gap up scan, no matter how you tweak the parameters). This seems to be happening too frequently. I was wondering if you or anyone else experienced the same problems

OONR7 said...

tom: you may be right, but it's hard for me to check. I do know that the candidates were pretty short this morning (around 9:50am). I just go through my steps (between the prophet scan and IB scan) so nowadays, I can't really tell if prophet is working. Let's just say that I'm glad IB has their scan which always works because I remember the days when prophet would have frequent problems and I would be left out in the cold.

greytrader said...

Prophet scans were not working this morning. Values seemed to be from yesterday. I have prophet silver.

greytrader said...

OONR7,

Did you get in on the long cup and handle in SAFM today ?

I am sure Jamie did :-)

greytrader said...

Did you do your SAFM captions with QT ? I see borders for text but I cannot figure out how you did this.

greytrader said...

Never mind I saw your answer to Jerry in the Craziness post. (snagit)

Looks great.