Sep 20, 2007

Hybrid trade - CREE

Going into today's trading, I knew I had to be out of all positions by around 11am or so as I had some things to do. So, I was hoping for a nice quick trade and that's what I got with CREE. I call this a hybrid trade because it incorporates my system with King Jamie's pivot points. Here's the chart:

  • The first thing that spotted my eye was the 2nd bar on the 15-min chart (inside bar) which formed right above R1
  • Looking at the 5-min chart, I saw price quickly dip below the 61.8% level, but never close below the 50% level
  • I mentioned in the comments yesterday that I view the 5, 10 and 15-min charts at the same time. So, on the 10-min chart, I could see a nice hammer forming above R1 at the 10am bar
  • Now, going back to the 5-min (have I lost you yet??), I entered long on a break of the 10:05 candle high on increased volume
  • Price went up almost as soon as my order was filled and approached the fib. ext. quickly. There was some consolidation at the fib. ext. and I was ready to partial out but it never happened
  • Since I had to leave early, I figured the nice round number of $34 would be a good place to exit (which was .07 below R2)
  • It worked out great, even though I missed a little bit more of a push upwards

6 comments:

Flatwallet said...

CREE did not fit into my rules...but I was watching it on the 5 mins and knew it was gonna run nicely. Nice trade.

Jamie said...

Nice work,

Almost traded this one, but hesitated after yesterday's big run up.

Anonymous said...

nifty trade.

QQQBall

John S. said...

Great stuff, still learning. . could you tell me what "inside bar" means? Also, do you ever go with a trade by gut? Meaning, on BIDU today, shorted at 280 today due to the shooting star that formed yesterday..

Thanks, John

OONR7 said...

fw, jamie, qqqball: thanks

john s: I don't enter a trade based on gut instinct, but sometimes I partial or exit trades based on what I anticipate may happen. Sounds like the BIDU trade wasn't really a gut instinct as you saw the shooting star and knew that's a bearish signal and should be thinking of going short. The more I can stick to my rules... the better I will be.
An inside bar is simply that... a bar whose high and low is inside the previous bar's high to low. If you look at CREE's 15-min chart, you'll see the second bar is an inside bar.

John S. said...

thanks for the reply.

John