Although AKAM gapped up at the open, it was very weak and eventually made its way down to the ORL from the previous day, which was also support for the swing low (also from yesterday). Since that support area could not be broken yesterday, I was curious to see how AKAM would react to it today. Well, the reaction was a beautiful bear flag just at the base of the support line, which made me quite confident that this time AKAM would break through. AKAM broke right through that line, pulled back to test the area (now resistance) and then collapsed into the close of the session.
5 comments:
Nice work,
I see what you mean by wider stops ;-)
When price starts to consolidate, I usually give it extra room too.
Thanks Jamie!
In this instance, I entered as soon as the candle broke the lower line of the bear flag (I did not wait for the candle to finish printing). My stop was the high of the previous green bar.
If you could , it would be nice to know your entry and exit criteria in this case.
Thanks in advance!
anarco
Looking at the 5 minute chart, the entry and initial stop are perfect. Price consolidates on the retest of the bottom of the flag as expected. I would have taken a partial at $30.00 because price always bounces at round dollar numbers. The partial allows you to give a wider stop on the balance because of the expected bounce.
Totally agree on taking a partial at $30. Thanks very much for your input!
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