ADSK - Short

Flatwallet asked me yesterday if I only trade hammers... and this was a portion of my reply:

"...if I see a hanging man after a long run up at a key resistance area, I will short the low of the hanging man..."

A great opportunity came up today to do just that in ADSK. Here's the trade:

• Placed fib. levels from first bar high to the third bar low
  
• Price initially gapped down then quickly started climbing towards the HOD (possible resistance)
  
• The 10:15 candle formed an inverted hammer with a long upper tail. A sign of a possible reversal
• The next candle was a hanging man with slightly increased volume and I shorted the stock on a break of this low
  
• Exited at the fib. ext after the increased volume at the OR low failed to generate a reversal (I did not manage this exit well)

I didn't like my exit as it never met the Trader X criteria. I should've waited to see if price took out the high of the 11:30 candle. I basically left .62 on the table. Nevertheless, I'm happy with the trade and anytime you can get out near the fib. ext. for a profit is a good thing.

FCX - Long

If every stock acted like FCX acted today I would be writing this blog on my 120' tricked out yacht in the British Virgin Islands... Virgin Gorda to be exact. But they don't... so here I am in front of my very untricked out Dell desktop. I can dream, can't I? Here's the trade:

• Placed fib. levels from first bar low to 3rd bar high
  
• Price retraced down and bounced off the 50% fib. level
  
• The 10:15 candle formed a perfect hammer right above the 61.8 fib. level with increased volume (if anyone can write code for this kind of formation please let me know). I entered off the high of this candle
• Price consolidated at the OR high and finally made a push upwards
  
• Exited during the 11:45 candle, right above the fib. ext.
  

Hope you all caught some good trades.

FDRY - Long

I found a few good opportunities today that had nice intraday setups which was supported by the daily timeframe as well. I traded FDRY today after noticing it had gapped up and pushed through a fairly recent daily high at $16.63. Here's the intraday chart:

• Placed fib. levels from first bar low to high (very strong bar)
  
• Price retraced down and below 61.8% level, but used the recent daily high as support ($16.63)
  
• I was looking for it to convincingly rise up and through the 38% level - which it did along with increasing volume
  
• Entered on a break of the 10:55 candle
• Exited my position at the fib. extention

While this was only a .27 move, my risk at the entry candle was just .07.