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
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6 comments:
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.
Nice work,
Almost traded this one, but hesitated after yesterday's big run up.
nifty trade.
QQQBall
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
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.
thanks for the reply.
John
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