Sep 25, 2008

NKE - Long

Should've had another nice day today but I messed up my stop with REP which ended up stopping me out. I entered off a break of the 11:15 bar high (3-min) and placed my stop at the opposite end of the candle. Normally, I would look to place my stop at the break of the previous bar's low on the :15 chart. Live and learn.

NKE did make up for my mistake. Traded it twice. First time was off a break of the 11am bar high (:15)... made it to 1R, scaled out some then was stopped out at around BE. Next, I entered off a break of the 11:30 bar high which was a very nice dummy entry. Scaled out after 1R... scaled again after a $1 gain and was finally taken out at 65.30 later in the day. Less decent than yesterday but it's always nice to work your way out of a hole and end up positive.







8 comments:

Tyler said...

00NR7,

Nice trade in NKE! I was also watching that, but did not end up trading it. I am glad to see you made some money on it.

Good luck tomorrow,
Tyler

Thomas said...

Great! I traded NKE at the same time it seems. Learnt ot from you and traderam trading. I would like to know how you use fib. extensions and retracements in your trading. I see fib. lines on your charts.

Thanks in advance.
Thomas

OONR7 said...

tyler: thanks... it really was a nice setup. Any particular reason why you didn't trade it?

thomas: glad someone's learning here :)
As of today, I primarily use fib. ext. to give me a price target. For longs, I draw from yesterday's low to the high of today's :15 range. The opening range high or low is also a strong area of support or resistance. I used to only enter above or at this area for longs but have recently removed that criteria from my rules. If there's a nice candle formation and the 3-min chart confirms the move... I take it.

Thomas said...

How do you use fib. lines to give a price target on big gap up stocks. For example, today - NKE.

I was also wondering how you would use fib. lines on TSN today.

Thanks,
Thomas

Tyler said...

00NR7,

I don't really remember if we missed it or did not take it. All I have to look at right now are my Stockcharts.com 1 minute charts and I think there may not have been a good stop for me. The chart is pretty smashed together, so I can't tell.

I have had some bad trades recently because of trading prior to the ORH/L and having price reverse, so I think that may have been my thinking. On the 1 minute chart it would have been about a $.50 stop from the low to the high of the morning.

Tyler

QQQBall said...

DRYS reversed at the 1.382 Trader X extension and back-filled the gap... then continued back down i missed it a bit and did not chase.... missed CB's first bounce from the PB to the ORH (i use the close on that bar).started to trade it for a scalp & then pulled the order. the bounce was too flat of an angle.

i had to be in teh field today anyway... 1 child in college and another next year - i take the work while it comes in...

nice trade 007!

OONR7 said...

thomas: if you look at the I posted on NKE... you'll the fib. ext. (or the 138.2% line) is my price target. I usually exit my entire position at this price but I hope to manage my winners better in the future. I drew my fib. lines from yesterday's low to the high of today's first :15 candle (or opening range high/ORH).

TSN is a different beast altogether as it wasn't a gap up stock so I would've ignored it (although it did gap down). If I had to apply fib. lines, I probably would draw them from the low to high of the first :15 candle. Could've made a case to enter on a break of the 10:45 bar high and set an initial price target of $13 (which was the ORH). Hope this makes sense.

Anonymous said...

Wish I had been watching this trade (NKE ). I would have cashed in and bought me a lot of sneakers :).

Good trading oonr7 and good explanation of your method(s).

Quentin