Tonto Trade – NTAP

I’ve learned a lot with my NTAP trade today.
I managed the trade with both the 15min and 5min charts. 1/15 gapped down on high volume. 2/15 was NIB with decreasing volume so I quickly draw PP lines and switched to the 5min chart. I immediately saw a nice IB with tall upper wick that was actually seating on top of the $22.50 intraday PP while getting squeezed from the down sloping 5 EMA. I entered on the break of 7/15. NTAP dropped quickly and I could see in the 15min chart that the low of the 10:30 bar, was hitting S1 and that bar was actually getting too far from the 5EMA so a set of consolidation bars was imminent. NTAP consolidated (sideway move) until price caught up with the 5 EMA (price and 5EMA are like magnets, as Jamie would say). Since consolidation took place at S1, I saw S1 as the main support/resistance area. Although the 11:30am tested S1, it closed below it and left a long upper tail, so I decided to stay in the trade. The next bar reached my first target; the 38% fib ext drawn from the previous day high to ORL. From that point on, NTAP starts building an ascending triangle in the 15min chart so I was quite sure I would have to exit above S1. As luck may have it, NTAP broke down again. I exited around the 38% fib extension (where I took initial, partial profits) because the hammer-like candles in the 15min chart led me to believe that sellers did not have the power to move the price below that line.


I also took a long position with NHWK entering at 9/5. I was looking for a Tom C. setup like this one, but unfortunately NHWK turned sour and I exited at the low of the 11:30am bar.