PAYX is on my WL. The first bar was a Marubozu so I thought price would take off without offering a dummy entry. But the upward motion slowed down for a pause at R2 and the 3rd bar printed an attractive IB with declining volume that closed just a few ticks above R2, so I entered there. I took a partial at the 38% fib extension (drawn from the previous day low to the ORH) and exited at $36.60, which was the resistance area in place from 04/07/08.
6 comments:
Nice trade.
Can you explain what makes a trade a "dummy" setup?
Thanks rz!
Dummy setup is a setup with low risk (high probability of success), a relatively narrow candle is the trigger bar, and the ROI is high (at least 3:1).
Cheers,
anarco
Way to be in the right stock!!! Did you use a market order? If so, hope there wasn't a lot of slippage. I've been thinking of using market orders on my bear/bull flag entries. I absolutely love when stocks just take off, but then you're left with the quick decision of cashing out. You did the right thing by partialing out.
Thanks oonr7!
This one was a market order with no much slippage primarily because I entered a touch early (I was following this baby with the 1 min chart and there was a beautiful base). I also traded WFC in the PM around 2:30pm the morning star reversal pattern is clear in the 15min chart, but I also entered early because I was following with the 5min chat.
Hey Anarco,
I was just wondering, what are your typical afternoon trading strategies? It's such a different animal in that it's much slower with a lot of "waxing and waning" if you will. Thanks for the input!
Hi Jonathan~
I do not have a formal strategy for the PM. It is mostly scalping opportunities and end-of-day rallies. If the market is very choppy, I tend to log off altogether. I like this way: most of my focus is in the morning and I like the afternoon to be more relaxed. If I found a good system that allowed me to trade only a few hours in the morning, I would go for that :-)
Cheers,
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