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).
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7 comments:
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.
I had my clocks changed and all... just slipped my mind as the day wore on. I hope to remember next week :)
It sound it weird when you said: candle on reduced volume right at the ORH.
Great trade!
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.
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!
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.
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.
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