I followed how AMZN collapsed yesterday and I saw today a continuation downtrend with lower highs and lower lows. 10/15 is the first bar that manages to close above the down sloping 5EMA and it is followed by and upsetting red bar that closed at its low (bears win). In this chart I do not see $74 as being an important resistance level (I turned off my trading computer already so I am not sure I missed something on the daily or the 5 min chart). My entry is the second NRIB and that extreme contraction lead to the expansive move that followed. Typically, Jamie takes a partial after 3WR bars, but in this case the 3rd bar was not so wide, so I took a chance and stayed a bit longer, and $73 seemed the closest target point for AMZN to take a rest. I placed my stop loss at the S1line, which is a little bit farther from what I would normally do, but I did it because buyers were putting up a good fight today (to stop the steep decline from yesterday) and suspected that the S1 level would be tested. But, I underestimated the strength of the buyers and they swept my stop away.
6 comments:
Would you mind explaining your thought process on this one.
Why would you not think that $74 would offer an area of support?
Thanks.
I followed how AMZN collapsed yesterday and I saw today a continuation downtrend with lower highs and lower lows. 10/15 is the first bar that manages to close above the down sloping 5EMA and it is followed by and upsetting red bar that closed at its low (bears win). In this chart I do not see $74 as being an important resistance level (I turned off my trading computer already so I am not sure I missed something on the daily or the 5 min chart). My entry is the second NRIB and that extreme contraction lead to the expansive move that followed. Typically, Jamie takes a partial after 3WR bars, but in this case the 3rd bar was not so wide, so I took a chance and stayed a bit longer, and $73 seemed the closest target point for AMZN to take a rest. I placed my stop loss at the S1line, which is a little bit farther from what I would normally do, but I did it because buyers were putting up a good fight today (to stop the steep decline from yesterday) and suspected that the S1 level would be tested. But, I underestimated the strength of the buyers and they swept my stop away.
Good points.
I noticed in 00NR7's blog you mentioned SF. Do you live in the area?
Yupe... I'm in the north bay. And you? It is very smoky around here ...
Small world, East Bay over here.
Yea I can even smell the smoke in the mornings near me.
Just noticed in 00NR7's blog you mentioned you are in Marin.
Nice area. You must be doing better than I thought ;)
Keep up the good work.
Cheers
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