The choppiness continues... but WM worked for me today.
This is a very straight forward trade. WM is on my WL. It gapped down and printed 2 IBs. 3/15 closed at its low and next to S1. I entered on 3/15, took a partial at S2, and exited at the end of the day.
6 comments:
Nice trade!
When exactly did you enter this trade? On the close of the 3/15? Did you just short at market?
Was your stop the high of 3/15?
Why not wait till the break of S1 and/or the ORL?
Thanks RZ!
That setup is very straight forward. There is no need to wait for price to break below ORL. I am using STOP orders these days.
Cheers,
Forgive my ignorance but can you elaborate on what makes this very straight forward.
Reasons for shorting.
1) Gap down below yesterdays close.
2) Bars 2 and 3 are two IB's (but not narrow range which would be preferred).
3) Bars 2 and 3 closed on there low and could not capture 5ema.
Reason against shorting:
1) ORL not taken out.
2) Bars 2 and 3 did not break S1
3) Gap down was not on heavy volume.
Thanks.
Trader-X has 3 years worth of charts with these setups, and I study them every weekend of my life (again and again). X did not use Pivot points or daily PPs; that is something added by Master Jamie.
So it seems to me that this chart is like the hundreds of charts at X site. Yes, once can argue that S1 was not taken, or that the ORL was not taken, but it is clear to me that this pattern = weakness. I also would had liked to see a narrower entry bar and higher volume, but this still seems to be a very powerful setup.
I am quite aware of good ol Jamie. Thats actually how I came across this blog :)
Looks like I'll be digging through old Trader-X posts for the next few weeks. Thanks for the push in the right direction.
Cheers.
Fantastic,
WM always a good WL along with other financials, LEH, rallied at the open Friday and reversed for a few points.
Post a Comment