Oct 1, 2007

PHM - Long

With PHM, I entered based on my criteria but then exited using Trader-X-style fib. lines from yesterday's low. I do this from time to time if price moves strongly towards my intraday price target and I want to see what the next 'logical' price target may be by using more extended fib. lines. I really wanted to get into this trade for some reason. I liked how it was basing along the intraday 38.2% fib. level. I thought the huge volume spike would cause the price to move down - which it did momentarily - but then it picked up again and I entered on another inverted hammer... fast becoming my favorite type of entry. Also notice how price set up along R2.
 
Entry (15-min):


 
Exit

9 comments:

gurlate said...

why didn't you buy @10.30 candle. it had retraced to your fib and above 5 MA.
since the first candle had a huge tail on top, was it a good trade?
besides homebuilder stock??

i spent 45 mins looking for setup and wasted..nothing looked good..lots of fade.
BLC looked promising but after my entry , it retraced further. I held on to chalk up some gain but wasn't happy with it.

Anonymous said...

i am beginnning to think that gaps do not really present any advantage. The basic premise with which OONR7 and his guru Trader-X traded was that stock will maintain the same direction after fade..( or else what is difference between gap & nongap stock?) since inordinate time is spent on looking for gaps (stocks that you may never heard of) and yet when stock reverses course, that very premise is gone. It is like any other stock and has no inherent bias (that is can go up/down/sideways).
So my conclusion is: Trade stocks that you are familiar with. Leave the grunt work of gaps trading (ha ha) on OONR&/TRader X etc.

Anonymous said...

i meant "same direction after gap..."

Anonymous said...

its amazing how a close above .382 intraday retrace is a "go" signal?

to anon - go back and look at X's site - the gaps provide volatility, range expansion, volume & direction bias. plus, no overnight holds with gaps, so you can muscle-up a bit on the size.

the alternative is to scan at night and spend hour(s) looking for set-ups - it difficult to catch the first day of a move. i scanned quite a bit last night & didnt see much that i liked. happens


QQQBall

Anonymous said...

oonr, nice trade.

About IB exporting page. I see in File menu - export this page and IB makes a txt file (ticket.txt). How do you paste this on quotetracker. I don't see any place to import txt/excel file into a new portfolio.
Or do you do something else?
thx
sam

greytrader said...

Anon,
Find something that works for you and stick with it. Trading Gaps can be very lucrative but it is not for everyone. You can definitely make a living doing it.

And get a name, or get a life which ever is easier :-)

bl said...

Anon,
Do a 5%>$3 >30k naz Tuesday first 15 min and see what you come up with. Do it for a few months and see if it makes sense to you. You can always trade hot sectors: solar chinese...

OONR7 said...

gurlate: 10:30 candle didn't close above the 38% fib. level. Didn't like tail on first bar, but that doesn't mean a trade won't work. I paid close attention to how price interacted with the ORH. There were a lot of gap fads and trading gaps today presented limited opps. (at least for me).

anon: you're a player hater. Go do whatever you don't do well and leave the gaps to us.

qqqball: great response. Although I have been using Jamie's watchlist to look for inside bar candidates but it really doesn't take much time since it's a set list.

sam: yeah, you can't import into QT, so I just copy the symbols from Excel and then paste into QT. In QT, just press 'insert' and then paste the symbols.

OONR7 said...

let me also add that gap plays (or any play) do not offer a guarantee. Some days there are a lot of gap fades (like yesterday) that don't work out. Personally, I never do well when the market is very strong on one particular day. Might be a good day to play momo trades but I haven't started those... yet. I have started using Jamie's watchlist to enter 'nonOONR7' type trades in order to complement my system.