Oct 29, 2007

ODP - Short

I picked up a friend visiting from London today... had a great lunch and was coming home to start trading (while my wife played host). However, I completely forgot that Daylight Saving Time occurred this weekend over here and I would actually start working an hour earlier than normal. So, I was still able to get a decent watchlist together and found a nice opportunity in ODP (5-min):

  • Priced gapped down, retraced 100%, then retraced again back to the ORH
  • Entered short on a break of the 10:30 candle low after price ran into the 5ema and printed a nice bearish engulfing, marabuzo-ish candle on reduced volume right at the ORH
  • Exited all my shares at the ORL















Also traded CMED for a loss (but it went in my favor at first - hate when that happens).

7 comments:

KC Equity Trader said...

Daylight Savings doesn't occur till this Sunday in the States. It was moved because of that Energy Act by congress. Hope it doesn't mess you up next Monday.

OONR7 said...

I had my clocks changed and all... just slipped my mind as the day wore on. I hope to remember next week :)

Jerry said...

It sound it weird when you said: candle on reduced volume right at the ORH.

Great trade!

OONR7 said...

bearish down bar after the 2nd significant retrace on a gap down stock which already tested the ORH and failed. The way I read into the low volume is this: demand had dried up from the previous trend (which was up). If there's an increase in demand to the upside and this is just a resting point... then more than likely the stock won't go below my entry bar's low. However, I sided with the bears (considering the strong down bar) and that's what ended happening. Not sure if that's what you were asking, but what the hell... I threw in my interpretation.

QQQBall said...

i entered LTR short during the #15/15" at 48.83. my initial stop was 49.23. i was looking for 48.67 and then a test of ORL near 48.

what i saw: price could not break the 61.8% intraday retrace (on closing basis after first 30"). this level was also the same as the TraderX 38.2% retrace level. i saw a big down bar on volume with price moving back up slowly. i went short at 48.83.

price promptly traded slowly up- through the R level and closed above - i covered at 49.05; -.22 for the trade.

what i can learn: i should have been looking closer to the R level and i did not let the entry bar finish - when it did, the bar was fairly bullish.

positives: not many, did cover when price closed above R.

nice trade 007!

Jerry said...

oonr7,

Sorry, I was making a joke instead.

Remember your rule of increase volume? Today, it is decrease volume. LOL.

One thing is clear, your trading in a level higher than before.

OONR7 said...

jerry: lol... it was a good exercise anyway. I still like increased volume in some instances (breakout trades) but the decreased volume combined with the right candle at the right level can be very effective.