Nov 8, 2008

Fridays trades

Traded quite a bit yesterday, but I really shouldn't have taken at least 3 of my trades. It's not that they were bad setups but the entries just weren't were I like them to be. FMCN, MT and DIS proved to be the account drainers while FLR, WFC and CXO were the account gainers. Luckily, the gainers were more than the drainers.
I particularly liked my CXO trade as it demonstrates something that I'm trying to do more consistenly. That is, shorting a gap up and vice versa. This is how I can increase my opportunities and, if correct, can be very profitable. I shorted off a break of the 11:45 candle as price fell below the 5ema on the previous bar and then showed consideralbe weakness against the 5ema. I played my exit safe and took profit at the $22 level.
FLR was a nice gain but not a good looking chart. However, I liked my entry off a break of the 11:15 bar high as it was an nr7/nr3 combo. It shot up quickly and and decided to fully exit at close to a dollar gain.

I missed a couple of trades that would've helped my PnL but I liked the opportunities I took.


Tyler said...


I have been staring at so many charts recently that I have come up with a couple of good trading setups that you might find helpful.

I am not sure if you look at any charts other than the 15 currently, but I am using the 15 and the 5. I am looking at the larger timeframe to tell the big picture, but trading off the 5 and sometimes the 1 for scalping.

In your "short the gap up" strategy, you may want to see what is going on on the 5. If price closes below the 10 EMA on the 5 MIN chart, I drop it down to a 1 MIN chart and let price retrace and then go short.

I have also found that if a stock is in an uptrend and closes below the 10 EMA on the 5 MIN chart, it will do a 3 PP Base and Break on the 1 minute timeframe.

I know this is a lot of information, but I am just excited to share my findings.

It has created a lot of nice setups for me recently because I have had a tough time with the usual setups and there have not been a whole lot of NRIB on my WL.

Have a good weekend,

OONR7 said...

Tyler... thanks so much for sharing your info. If you remember, before I changed things up, I was looking for my signals off the 15-min chart but also looking for solid confirmation on the 3-min timeframe. In particular, I was looking at price action in relation to the 20ema off the 3-min chart. It had been successful but it was also very time-consuming. And I was also only looking to 'trade the gap' with these setups. It warrants another look on my part.
Thanks again and I hope you continue to do really well. Isn't awesome when you find a new way to trade that produces a high-probability of success?