SLB is on my WL. The first chart shows the uptrend line that started on 04/08. Yesterday SLB printed a bear candle that closed near its low. Today, the first 15min bar broke the uptrend line and took the previous day low on high volume, and that was a good indication that SLB would drop today.
The second chart describes how I executed the trade on the 15min chart. The 2nd and 3rd bar consolidated near the ORL and the 3rd bar closed below the OR (and against the down sloping 5EMA), which makes this a perfect Trader X setup. I took a partial at $100.00 because it is a significant round number and because these numbers are like magnets. I exited my position at the 100% fib extension drawn from the previous day high to the ORL. I am often amused at how well the Fibonacci lines work.
9 comments:
Very nice trade.
Why did you decide to use the 100% fib ext as your exit? Isn't the typical trader-x style the 38%?
Thanks PDT.
This trade is a typical Trader-X entry. As you can see on my charts I have pivot point lines and high and low lines from the previous day. I use those lines to define my exit strategy.
In this case, S1 and Fib 38% could have been good spots to partial out, but I felt that the sellers were controlling the game and that the stock would reach the key $100 figure, that is why I decided to partial out there. You can see that the bar reaching $100 does so with very high volume, that was another indication that the down motion was still strong so I decided to stay until the 100% fib extension.
Ok, so the volume played a role in your decision. Thanks.
Thrs, Euro and China oils gapped up and many Amer followed suit at the open, later reversed. Fri, China oils gapped down and ALL oils sold off from the open with NO gappers. Interesting.
Hey bl~
Do you actually look at that info during the trading session or is that something you analyze after the fact?
Cheers,
Anarco, I just noticed this in the last 2 days and don't know what the correlation is but something to look at CEO PTR Euro oils gap premkt see what happens at the open to Amer oils. Keep an eye on it it.
Thanks for the tip bl!
stud trading.
good plan, excellent execution.
Thanks QQQBall! I wish all days were like this one...
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