Jul 9, 2009

Thursday's trade

Someone asked yesterday whether I considered proximity to a round number before entering a trade. I said yes, depending on the chart setup. My trade today with FLR is a good example. I entered long off a break of the 11:30 bar high. My entry was $47.99 but if you look at the chart, you'll see that it was a strong candle that formed right at the ORH and price action was very much in an upward trend. To me, it was a strong looking stock - regardless of the round number.

Now, after making an initial move... price became very choppy and I exited the trade with money in the bank. It continued to move where I wanted it to - just below the fib. ext.

Also, if you haven't checked out SpiderScan... do yourself a favor and do it now.

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