Monday, February 4, 2008

Tonto Trade – CAL





What a nice trading day for me!
CAL was on my watchlist as potential continuation play (UP) from yesterday but when the market opened, CAL printed a bearish wide OR candle with a long wick. A few bars later, CAL broke below the 5 EMA and at 11:30 the 20EMA crossed the 5EMA and right in the center of the cross was trapped the wick of a bearish candle. I immediately switched to the 5min chart and so a sweet NRB with an upper wick (inverted hammer?) and it closed near the low of the bar. CAL dropped steadily for the next 1.5 hours until some buyers showed up and stopped the damage. I used the high of the 13:05 bar and I was stopped after 1:30.


I also took DFS short as it is described in the chart.

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