I have to leave for a meeting but I wanted to post this trade before I go. The first chart is a daily for SOHU. I have been following SOHU for the last few days because it was setting a nice B&B at $70.50.
The second chart shows how I executed the trade. SOHU gapped down, tested the $70.50 area and then tried to rally; but it could not take the down sloping 20EMA on a closing basis. Then SOHU started approaching the $70.50 line while observing the 5EMA on closing basis. My trigger bar crossed the previous day low line with very low volume and although it did not manage to close below $70.50, I thought the price would explode when it did. I placed my Sell Stop at $70.55 just a few cents below that bar. The next bar was an inside bar with increased volume and then price fell. Typically I take partials at the significant pivot points, but today I decided to ignore them mostly because of the orderly move (and gut feeling). I draw the fib extensions from the previous day high to $70.50, which almost matched perfectly the previous day low. I took a partial just a touch above the 61% fib ext and was stopped out a few bars after that. I was aggressive with my stop loss because SOHU was showing some signs of strength at that time.
4 comments:
Nice work Anarco!
I also shorted SOHU - similar entry - bear flag on 15 min.
Thank you very much Jamie!
I really like your entry, but unfortunately I did not see it at the time. I look forward to seeing your exits (if you decide to publish that trade today).
Cheers,
Nice work indeed.
After you decided that 11:00am bar would be your trigger bar and then the next bar was an IB, would you ever adjust your stop to the high of the IB.
That way you could increase share size and potential profit?
Thanks PDT~
I could have adjusted the entry price on my order, but I liked that the stop loss was at the S1 line. I did not want to get stopped out on a head fake/retest of the S1 area.
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