Sep 14, 2007

WTF - Short

Okay, I didn't trade WTF... but I did have a WTF trade today. Hey, what can I say? Just got tired of sitting on my hands. The trade was IMCL and while the pattern looked nice before entry, the actual entry bar didn't follow a couple of my key rules (volume increase and strong/weak close). But, I saw the entry dangling there... looked at my scarce gappers watchlist and said WTF (do not try that at home). Honestly, I shouldn't have taken this trade because I try to be a very disciplined trader. However, sometimes it's okay to take some calculated risks. The only thing really lacking on this trade for me was the volume as my entry was still a NRB (spinning top). Here's the chart:

  • Placed fibs. from first bar low to high
  • Price dropped below the 61.8% level then quickly moved back up again (didn't like that)
  • Price then moved nicely back down in a nice orderly fashion (notice the half circle, similar to my MVSN trade earlier this week)
  • Entered short on a break of the 11am candle low
  • Took a partial on a break of the 11:30 candle high (hammer above the 5ema and at the ORL, possible reversal signal)
  • Sold the rest on a break of the 12:30 candle high

8 comments:

Flatwallet said...

The pattern looked good on the 30min and the 15 min. So I say good trade. Have a good weekend buddy.

Jamie said...

Great stuff OONR7,

I like this setup and I'm going to trade it more often. Once price closed below ORL, I managed it on 15 min.

Thanks and good weekend!

Jerry said...

I give this one up. At least you got it.

I would of enter the bar before.

OONR7 said...

fw: thanks man, you too.

jamie: Hope I can give back some knowledge you've given to me. From now on, I'm scanning for inside bars on the :15 charts (2nd & 3rd bars for sure) from your watchlist. Have a good one.

jerry: the bar before didn't close below the 61.8% level which is possible support.

Jerry said...

Yes, but it work this time only. LOL

Tell me, after you entered, the next bar is not hammer (but will more volume).

Let say it is a hammer, what would you have done? Tighten the stop?

Also, if you were long and you get a invert hammer, then what?

Thank you very much.

bl said...

oonr7,
Nice trade. Noticed 4/15 hammer long, 5,6/15" offsetting. 30" too. Also premkt Briefing list has been good recently: ach imcl gm imcl. Good weekend.

OONR7 said...

jerry: if the next bar was an up hammer (meaning price closed higher than the open) I probably would look to partial out on a break of that hammer's high. Depends on how close it is to my original stop and where the 5ema is. If it's close to the 5ema, I may just wait for price to pierce or close above the 5ema and then partial out above that price.

Same applies to inverted hammer/shooting star in a long position.

OONR7 said...

bl: yes, I've been uploading Briefing's gap list in the morning. My scans usually have the same stocks (especially lately when it's been slim pickin's). There's a bit of duplication but I don't mind.