Thursday, May 8, 2008

Tonto Trade - RHD




Although I am mostly on scalp mode, I was lucky enough to catch RHD. At first I discarded it because of the questionable first 15min bar that was very long and had a long upper wick. However, a little bit later in the 5min chart I noticed an orderly retreacement, a base formation, and very nice declining volume. I also liked the 4:1 ROI. I entered at $7.41 and my stop was at $7.20. I exited the full position at the ORH because RHD opened with a big gap, it was quite extended intraday, and price was hitting the 50 EMA on the daily chart.

3 comments:

Tomer said...

Nice trade, but why are you entering stocks below 10$? and also, what is the translation for "Tonto trade"?
Tomer
http://ghostpowers.blogspot.com/

anarco said...

Thanks tomer!

Tonto trade = dummy trade

I tend to stay away from stocks below $5 just because the spread is a bit tight for my taste. This one had a $0.20 spread.

Tomer said...

Ah ok,
Have a good time in your vacation! :)