ACI gapped up and printed a very nice series of NRIBs on declining volume (bars 3 to 6) at the base of R2. The 6th bar was NRIB with low volume and close to the rising 5EMA, so I entered on the break of the 6fh bar high. Price quickly rallied to the ORH line where it consolidated for a while and then continued its way up. At 2pm and after a solid, red candle ACI printed a doji and it was clear on the 1min chart the signs of struggle between buyers and sellers, so I took a partial profit at that point. I was very tempted to exit soon after that, but it seemed like price simply was retracing to the $49.00 line. Buyers seemed to be loosing momentum so I exited at $49.00.
BDX also worked well for me today.
13 comments:
Do you mind explaining what you used for your stop in both examples. Thanks.
Anyone else see a nasty lower wick on the 12th 15min bar?
Strange.
One last question. What was your target on the ACI trade? Did you have a specific target or where you just going with the flow?
Hi Anon~
ACI stops:
1. Took a partial when I after a WR red bar and sign of weakness.
2. Exited when buyers could not hold $49.
BDX stops:
1. Partial at the R2 pivot point line marked in orange.
2. Exited after three consecutive WR bars.
Hi Anon_
I do not see the lower wick you refer to. Sorry.
anarco
Hi Anon~
My final target for ACI was $50 and we could have gotten there with just a little afternoon strength. But sellers had a different plan.
Cheers,
anarco
Thanks for the replies. Been reading through you blog for about a week now and i like what i see. Good Trading!
Sorry that I didn't clarify but when I was asking about the stops I was referring to your initial stop-loss.
And for the ACI $50 target. How did you come up with this?
Hope I didn't bombard you with too many questions. I appreciate the help.
Hi Anon~
Thanks for the compliments.
My stop-loss is typically the trigger candle low.
Why $50.00 as a target? IMHO the round numbers not only act as support/resistance, they also act as magnets. So if a stock has momentum and it is close enough to a round number, it is likely to touch it. With ACI it was a gut feeling based on early price action that it might try to get there. But I was wrong.
Thanks. Keep up the good work and Ill keep up with the questions :)
a real professional trade in ACI... good eye. I was hung up in my rules and waited for a narrow range bar to close strong around this level (little to no upper wick). The 11:15 bar came close but it closed right below the ORH so I waited. Anyway, nice wedge trade.
Thanks 00NR7!
I also like your MOS trade.
Does it worry you that the trigger bar you use is red and you want to go long?
Anon~
It did not worry me in this case because:
a. The trigger bar is a NR bar. So open and close prices are close.
b. This is a play on price contraction and volume contraction at the base of a major Pivot Point (R2). The main thing I was betting on in this type of trade is that price will shoot up in the direction of the trend/upsloping 5EMA.
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