May 15, 2008

'Couldvebeen' day

We all have those 'couldvebeen' days. Where we 'couldvebeen' rolling in dough if we entered a trade that we were stalking. Or we 'couldvebeen' bathing in champagne if we had a reliable scanner that didn't crap out on a day when there weren't very many options to begin with. Uggghh.

WGOV was my 'couldvebeen' trade. I actually traded it (12pm bar, :15) and made some money before taking a wise and proper exit. But later in the day... off the 5-min chart I saw an entry that screamed at me. I passed because it was almost 3pm and I do not normally buy that late in the day. That may change. Anyway, the stock ended up moving more than .70 in my direction. I'm talking about the 2:50 candle on the 5-min chart.

I actually felt really good about staying on the sidelines today (relatively speaking as I did make one trade).


PDT said...

Can you explaining your thought process on the buying the pullback on WGOV? I am still trying to get these down.

I see that it was an orderly pullback to the 50% fib mark from the daily low to morning swing high.

Did you like that it was NR7?

Would you also mind explaining why you liked the 2:50 bar on the 5 min? I actually ended up trading it off of the 15min. I saw a nice strong candle after a hammer. Both held the ORH and my trigger bar was accompanied by a nice uptick in volume.

OONR7 said...

pdt: yes, my entry was based on an nr7 that formed right below the ORH. Only thing I didn't like was that 4 bar downtrend prior to my entry. I ended up taking a smaller risk size because of it.
For the 5-min entry, the 2:50 bar is what I call a 'failed reversal' setup. Meaning... there was an uptrend starting 3 bars back. The bar prior to my potential entry was a spinning top or a reversal area/bar. The potential entry bar (2:50) confirmed the failure of that reversal and a continuation of the uptrend. Basically... the bar prior to the 2:50 candle looked like it was going to reverse downward... but it failed.

greytrader said...

Prophet was not working early in the day...(the free basic sub anyway :-))

Fortunately IB scans had most of the candidates for today. WGOV was also on briefing and INET... I too was stalking WGOV all day from a short 8 stock list and gave up after 14:00... It looked like it was just following the NQ. It popped with the market at the EOD. Tommorrow is OEX, generally not the best for gappers.

PDT said...

nr7, thanks for the explanations.

bl said...