Oct 8, 2007

COGN - Long

The anatomy of 1.08R trade (COGN):

5-min chart

  • Entered on a break of the 10am bar high which was an inside nr7 bar with drastically reduced volume (contraction) right at the intraday 38.2% fib. level
  • After being up 3R quickly, I ended up partialing out and then getting stopped out for an .8R loss

15-min chart
  • This is a trade I wish I didn't make. I tried to get all Trader-X like
  • Entered on break of the 10:45 bar high which was an inside nr7 hammer right at the ORH (with fibs. drawn from yesterday's low)
  • Exited for a full 1R loss 2 bars later

30-min chart
  • Yes, you read correctly, I traded the 30-min chart. I actually studied a lot this weekend and I'm going to start looking at the 30-min chart for inside bar opportunities
  • Entered on a break of the 6th bar high after bars 4 and 5 formed inside bars. Bar 6 was also an nr7 with increased volume right at the ORH and very close to the 5ema
  • I exited on what is looking like the top of the move (as I write this at 3pm) at 50.35... it was getting late over here and I was happy to take a 2.88R gain


I also traded ABAT which is a more traditional trade for me
  • Entered long on a break of the 6th bar high which was an nr7, closed above the 38.2% fib. level and sat on top of R2
  • While the entry was pretty, the exit wasn't and after noticing resistance at the ORH in bars 8 and 9 I decided to just exit at the ORH with a gain

10 comments:

greytrader said...

You were pretty busy for a low volume day like today ! Looks like we had a similar list.

I traded COGN off the 15, 12th bar break. I passed on your entry because of the distance to the 5MA and the fact it had no pulled back yet.

I was looking to enter ABAT 1 bar before you but passed, I did not like the first 2 bars.

I shorted NOVN off the 15 at the end of the day.

Your trades are more X-like today. I like the 30, it seems to work very well for days when the lower time frames are volatile. It is also nice and slow if you manage your exit in the same time frame (I know you don't).

Bubs said...

Some good trades today, just wondering why you didn't take the ABAT trade the bar before? Was it because it was still under the 38% retracement? I ask because it looked like a nice candle to go long.

OONR7 said...

gt: I saw your entry on the 15 (as we entered at the same time) but I didn't like the heavy volume down bar preceeding it. I much prefer an nr7 with volume after a low volume inside bar. Buy hey... you shaved .10 off your spread :)
I also liked NOVN but couldn't find a comfortable spot to get in.

bubs: I didn't enter ABAT the candle prior for the reason you stated... it was below the 38.2 level. Especially since price was coming from the south, I wanted to see if that level was going to be support or resistance. If you don't trade with fibs., I'd agree that the prior bar was better because of the decreasing volume and the solid close at R2.

John S. said...

I like your 30 minute timeframe change. .Not sure if you ever pop over to "tradermike.net", but he also mainly uses the 30 minute timeframe. . My question is, would you want to wait until 10:00 a.m, 10:30, 10:45, etc. before entry. . I always pull the trigger to early on the 30 minute timeframe. .

Thanks, John

QQQBall said...

the trade on COGN was the second close above .382 retrace at 10:20 - of course thats hindsight which is perfect.

QQQBall

QQQBall said...

i cant speak for Trader-X, but i suspect he would have entered on the 11:45 bar as it was right against that 5MA on the 15-min chart. my prior comment was on the 5-minute

Anonymous said...

oonr:
i needed to ask you about your setup fot NR in QT.

you worote this before
"if (Bar High - Bar Low) < (Bar High[1] - Bar Low[1]) AND..."

Now how does QT know if it is 5 or 15 or 30 min BAR?
also you put this on alert so it scans stocks or do you end up scanning stocks manually (which defeats the purpose)

i would like it to scan for NR set up for any stocks it may find (just like TRADEIDEAS)...does it work like that? or else i would end up buying TI//

thx
sam

greytrader said...

Sam,

There is no scanning in QT. Alerts and paint bars are stock specific. The NR7 formula o7 gave you will highlight a NR7 on a chart for you with an arrow or a marking of your choice. You add this paint bar as an indicator and it works itself out depending on your time frame.

QT just uses your quote feed and displays charts, they have no database or feed with scanning capabilities.

OONR7 said...

sam: while greytrader is correct in saying QT doesn't have a 'scanner' per se. However, if you add the nr7 indicator to your chart and have the indicator show a pop up box as an alert, then... if you have all your charts open, the dialog box will pop up every time an nr7 occurred. Now, if you have 30 stocks in your watchlist... that's quite a lot of charts open. But, if your watchlist is small... it can work. Personally, I prefer to scan my chart manually and don't like the distraction of pop up boxes. As far as the nr7 appearing on different timeframes... you need to be sure that you save all the timeframes where you've attached the paintbars. The QT help feature as a lot of information on this.

john s: I always wait for the candle to finish... no matter what timeframe. So, it's ok to enter the 2nd bar on a 30-min chart at 10:45 so long as you're using the 2nd bar as the entry candle. Sometimes it takes time for price to be taken out.

Anonymous said...

oonr,
may be i am dumb..what's the use of this elaborate paintbar rules and all when your own eyes can do a better job..

i want to incorporate my own progran thru API in the IB...but you there is a learning curve and then there is time issue..
i have seen trade ideas but i think the best way to deal w/ this is progrma C++ thru API in the long run that you can tweak as you see fit.