Feb 15, 2008

ACI - Short

ACI presented a nice setup off the 5-min chart but because price had been in the upper part of the OR range (15-min) I decided to wait for a setup at the ORL.
 
What I saw at the ORL were 3 consecutive inside bars with upper tails (9, 10 and 11). I took a dummy entry off a break of the 11th bar low. Price dropped immediately and then dropped hard. I always hate wide range bars because you know there will be a pullback... but you don't know how much. So, I tried to be reasonable and wait for price to fall back down but it didn't happen. I partialed on a break of the 1:30 bar high and sold the rest about .10 below my entry.
 
That big blue line you see then is the intraday fib. ext. I noticed this area acts like resistance/support sometimes. It proved to be support today... unfortunately. Overall, I've been seeing the charts much better lately which is good. I wish I would've followed my gut and enter long, PCLN off the 11:15 bar high (:15).
 

6 comments:

PRD trader said...

ACI was in my watchlist,but i didn,t like the first bar so i wasn't watching it closely,but u did good job.

TraderIAm said...

Hello.

Like your blog, keep up the good work. I've just started blogging as well.

On your comment about PCLN, I was also watching that today. The range of the 11:15am bar was $1.69 which put me off. Would you have traded with a stop below that bar ? Or would you have used an tighter stop ?

Thanks.

OONR7 said...

prd: thanks. First bar did concern me as well that's why I waited till the ORL. However, I should've considered that strong first bar as an indication price might move strongly back up at some point and take profits earlier.

traderiam: Considering the closing price on the entry bar for PCLN was $118.47... then a 1.69 spread represents about 1.4% of the closing price which isn't that wide (but still wide). However, considering all the room to move between the ORH and the fib. ext. it would've been worth the risk.

TraderIAm said...

00nr7 : thanks for your input on PCLN. Fair comment on the spread.

Hope you don't mind me mentioning here, but I have started my own blog, so if you guys want to have a wander over some time and let me know what you think, that would be great. It's mostly all TraderX type trades. I'm still a relative novice with regards to trading, so would welcome any input.

http://traderam.blogspot.com/

Thanks

bl said...

Nice short. Coal sector downgraded: cnx anr fcl mee btu fdg
aci pcx. Some charts: +cgnx noa pcln asia rnr ustr anst mchx swc
-axln hitt. MGM -6/15 impatient, b/e and continued down another 1-1/2pts.

OONR7 said...

traderiam: nice site... I will add.