I normally stay away from trading in the direction of the gap when there is a really huge gap (more than 20%-25% gap) for fear that the stock could be fully extended at the time I get in. But I liked ISIS because of the orderly action (after the first 3 chaotic bars) and the beautiful 2 NRIBs against the down sloping 5 EMA. I also liked that price stayed below the 5EMA throughout the session. My entry was at $12.49 (just below the second NRIB), my stop was at $12.56, and my exit was at $12.00. Initially, I thought I would take a partial at $12, and see if the stock would reach the ORL, but I finally decided to exit at $12 since I did not want to wait through the usual jumping around that takes place at those key numbers. Anyway, the stock ended up closing at $11.98 :-)
3 comments:
You sold at $12.50 and covered at $20? Ouch :) When you say orderly, what do you mean? Otherwise nice trade.
LOL chartguy!
Thanks for catching the typo. To me, orderly means:
- not a lot of zig-zag (indecision)
- not a lot of upper and lower shadows
Only a 7 cent stop! But it waorked. Check the 5 min on that wild one..I like the rally tjhen reversal. 5/30" also good Might be a good scan: bjri shpgy syna. Avid ntgr ezpw
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