Sep 13, 2007

GM - Long

Another day with not a lot of candidates but GM set up nicely on the 5-min chart Although it did give me some trouble right away. Here's the chart:

  • Placed fibs. from first bar low to third bar high
  • Price almost retraced 100% before rising again
  • Formed a nice base along the 38.2% level (I look for this when a stock has dropped down after the open)
  • Entered long on a break of the 10:50 candle high on increased volume (broke above the base)
  • Next candle after entry was a shooting star and I immediately sold off some shares to limit risk
  • Priced retraced and bounced off the 38.2% level and steadily rose until bursting through the ORH
  • Sold remaining shares just above the fib. ext. (didn't catch the ride up later)

26 comments:

Jerry said...
This comment has been removed by the author.
Jerry said...

I have to save this chart for my study.

OONR7 said...

jerry: I would have preferred it if price didn't retrace almost 100% but it made a nice and steady comeback. The entry candle was extremely convincing, though. Guess the good thing about a small watchlist is that I can't possibly miss it :)

Rudy said...

Surprised you did not trade mcd. Not a fib retracement candidate, but had two nice inside bars and was trending at all time highs. Rudy

OONR7 said...

rudy: mcd was on my watchlist and I watched it go by. Didn't retrace to where I like it... but it was a great ORH play after a nice base.

Flatwallet said...

Yeah Rudy..MCD was sweet..I also like NUE which I traded...but MCD was nice...another nice one was KSS...

Rudy said...

Flatwallet, on the 30 min chart, it was exceptional. Sorry you did not catch it.

Always like to stand at attention when a stock (1)gap-out (2) from a long basing pattern and (3) break-out to all time highs, and especially when on (4) unusual volume. The most ideal candidate!

Does not happen often, but more than likely you can find such a trade at least once a week. Rudy

John S. said...

Anybody trade JSDA today? Gave several NR's and then popped. .

Teddy DaRussian said...

awesome trade 00 - I caught the early short off the 2nd bar - love your style though... :)

Anonymous said...

nice trading!

QQQBall

OONR7 said...

rudy: nice breakdown.

john: jsda wasn't on my watchlist. Did you catch it?

teddy: thanks and nice countergap trade. Gotta be quick on your toes to catch that one.

QQQball: thanks.

OONR7 said...

flatwallet: where did you get in on NUE?

Flatwallet said...

55.48 around 11is...TS and QuoteTracker are 5 mins apart but I forget if it's 5 ahead or 5 behind.

MCD was better but NUE was nice. But so was AFL. Which I passed on for no reason. Inside bars are so simple to trade but I am quickly learning that there's a good type of inside abr and a bad type. The differences are subtle enough to lead to poor trades.

I will say that I have now started watching the fibs a little more closely and it does yeild better results. Or at least it helps you filter out junk.

Jamie said...

OONR7,

Perfect signature OONR7 setup on IMCL today. Think I'm starting to get-it now.

2:20 EST

greytrader said...

IMCL was nice on the 15' too.
I shorted the break of 9th bar and got out at 39.90 just above the 19% extension

greytrader said...

Figures...
Looks like IMCL is going lower now :-)

Jamie said...

GT,

200 ma - $39.90

OONR7 said...

jamie, gt: I got in IMCL (11am candle, 5-min). Once again, just a handful or so of stocks on my watchlist today, but it worked out well. I'll post a chart later.

OONR7 said...

jamie: there are some similarities to your cup and handle patterns. I especially like the way IMCL's price retraced back above the intraday 61.8% fib. level (forming a little cup) and then dropped below it.

greytrader said...

Jamie,

IMCL 200 MA on which timeframe ?

Jamie said...

OONR7,

I was looking at it on the 15 min. Two inside bars 2 and 3 but ema too far away. It rallies back up to S2 (cup) and carves out another inside bar. That's when I focused on the 5 min. and saw your setup.

Jamie said...

GT,

15 min. That's where I took a partial. You're the one who gave me that tip.

greytrader said...

Yikes...
My 200 SMA and EMA seem wrong in QT
I use EMA and 39.90 is the correct 200 SMA but both of them are wrong on my QT chart.

Jamie said...

GT,
I use ema for 5 and 20 and sma for longer MAs 50 and 200.

greytrader said...

Nothing wrong with QT, just me. My backfill is 5 days which is 130 periods on a 15min...

Thanks for pointing this out, I will have to get my 200MA values from elsewhere.

greytrader said...

Jamie,

I switched to a 10 day backfill and all is well now. When I moved over to QT, I corrupted my 200MA values. And I too use the 200 SMA not the EMA... Another error introduced when I changed charting program.

The 200 SMA acts often as resistance or support on the 15. In the case of IMCL it did eventually make it to the 38% extension, so I wish I took a partial at 39.9 iof closing position.