Tonto Trade – AKNS (Akeena Solar, Inc.)

AKNS was also a gapper yesterday. It hardly managed to break the OR high around 2pm for a short while and immediately retraced back to the $11.5 area. Today, ANKS gapped again and the second 15 min bar tested the OR high of the previous day and filled the shadow of the first 15 min candlestick. Although I spotted the trade in the 15 min chart, I managed it with the 5 min chart.

Entry = above the OR high at the close of the 6^th candle
Stop = low of the 6^th candle
Partial exit = close of the 15^th candle
Final exit = close of the 16^th candle

The two bad things about this trade were: first, since the entry candle was wide, the protective loss was also far from the entry point. And although the stock rocketed after my entry, I only made a 2.7R. Second, my final exit was on the second volume spike, but I could have waited for a further development and an exit signal from a candle formation.