Tonto Trade – AKAM

AKAM was a potential UP play from the watch list. In the 15min chart and after the OR bar, AKAM printed two inside bars with long upper shadows. When I switched to the 5 min bar, the chart still looked very interesting: the bars were closing above the 5EMA in an orderly fashion. I was concerned about the long upper shadows of the first three 15min bars, so I waited until a bar closed above the ORH to enter my trade. In retrospect, I can see other potential entries before then (a bit riskier), for example the two hammers before my entry. I took a partial at the 38% fib extension taken from the previous day low to the ORH. In retrospect, I could have waited to take my partial at the 50% or 61% extensions (I need to improve this as well). I exited my position once AKAM crossed the 20EMA (this also may have been a bit premature). The rationale for my exit was that the long red bar of my exit took place exactly at 2pm, which is a time where trends are more likely to change (again, something to keep observing in the future).



RIMM was just an entry I could not resist. The 12:15pm bar was sitting on top of the ORH and was being pushed up by the ascending 5EMA. My entry bar was also filling the shadow of the previous bar, which had finally broken the ORH (after 2 previous attempts). This was just a quick scalp that yielded 3R. Again my exit was around 2pm, when the market mood started to change (or so it seemed).