Apr 23, 2008

FXI - Long

One trade can make for a satisfying day and week. I was actually late pulling my scans this morning and by the time I backfilled all my candidates and started flipping through the charts... my entry bar for FXI had literally just finished forming. Entered off the 5-min chart, break of 10:10 candle high which was an NR7 that formed right above the ORH after the previous bar found support off the 5ema. Partialed after 1R (haven't properly credited TraderAM for this as I used to partial at 2R) and sold the rest after a $2 gain.
 
Going back to the partialing part for a moment... I really like taking some cash at 1R and moving my stop to breakeven. This has been working well for my style of trading plus it ensures I'm in the money.
Another thing I've been doing well lately is analyzing the post-entry action of my trades and partialing out if the trade's taking long to develop or not going my way. While this sometimes leads to regret... lately it's been saving me cash. As an example, entered PM today as well (off the :15) but it wasn't moving much and I decided I would move my stop to breakeven and take my chances. Worked out well as I most certainly would've taken a full loss on that one. Despite FXI, I have still been finding it tough to trade this week. FXI is a classic example of how persistence and patience can pay off.
 

12 comments:

greytrader said...

Nice trade !

You used the 10 min ORH on a 5 min chart... Not that it makes a difference in this case, it still would have looked good.

You obviously drew your fib on the 10 min chart. How do you decide which time frame to draw the fib on ?

OONR7 said...

gt: I used the 5-min ORH for entry but I must've adjusted the fib. levels after the fact. Looks good on the 10-min chart as well (10:10 and 10:20 bar) except price was a bit further away from the 5ema.
I am constantly adjusting my fib. levels since I trade simultaneously off the 5, 10 and 15-min charts.
Sharp eyes!!!

anarco said...

Awesome trade!
I tried entering twice with buy stop limit orders but I did not get filled :-(
What type of order did you use with this one for entering and exiting?
Congrats again!

OONR7 said...

anarco: thanks, sorry you couldn't get in. Same time? I used my usual buy-limit order, 2 cents above the high with 4 cents allowed for slippage. Are you using IB?

anarco said...

I am using IB, but I did not know you could limit your slippage :-(
How do you do that?
No, I was not trying to get in on this one.
Thanks.

anarco said...

I think you might be referring to stop-limit (STP LMT) orders where you can define the stop and limit price. If that is the case, then I gather from what you say that your buy stop limit order is set with the STOP at 2 cents above the high, and the LIMIT 4 cents above the stop. Is that correct?
Let me know if there is another order type that I am not aware of.
Thanks again.

bl said...

That's Jamie, not Kamie, who traded drys Tues. Today: molx zbra ilmn cern brcm nuva logi mrvl
ba(I'm sticking with naz for awhile unless it's a big deal nyse) cree tsfg. All Premkt scan

OONR7 said...

anarco: yes, stop-limit is what I use (Mr. Technical). I have it automatically set in IB that every order I enter defaults to a stop limit order with a .04 difference from the stop price to the limit price.

Trader A said...

nice trade 00,

apart from churning myself to death trying to pick the bottom at MBI i had two nice trades:

1- ABK 10min/6th cdl. (that a chart is a chart is a chart - no matter the stock's price)

2- CFC 15min/4th cdl - was under the OR, but worked nice,
and then CFC 15/15th cdl - which closed above OR. Now, i didn't like the fact that it was quite retracted from the day highs, but couldn't resist the cdl. formation and the fact that it closed above OR. would you take this kind of setup?

A

OONR7 said...

a: nice ABK trade. As for CFC... there are many reasons why I wouldn't even look at this chart (no gap, choppy pattern, low R:R among other things). As for your entry, yeah the offsetting bar was nice but I try to look at the overall pattern in addition to the individual candle and, more often than not, I will let the overall pattern dictate whether I enter a trade.

trade a said...

shit- C*E*C..
sorry 00

OONR7 said...

a: now we're talking. Well, the 4th bar is a nice candle but I don't like how far away it is from the 5ema. Also, if you draw the intraday fibs. from the OR low to high, you'll see that candle is right between the ORH and the 38% fib. level. I call that 'no man's land' and will normally stay away from entry there. But mostly, I don't like how far it is from the 5ema. I believe that's an inside NR7 too... and I like those alot, no matter where they form. So... to sum up, I'd take this entry if it was closer to the 5ema since it was an nr7. As for the 5th candle... don't like it. Too much of an upper wick which shows weakness. The next few bars suggested the same and a retrace occurred. Better entry for me was the 2pm bar but I hardly ever enter that late anymore.