Although I sometimes trade OIH, I mostly use it as a reference to know what is going on with the oil sector throughout the trading session.
After the first 3 bars, OIH printed a quite bulish offsetting bar and from then on started to move up printing higher highs and higher lows. Point C is higher than point A and point D is higher than point B.
As price approached point E I thought that the S2 line (orange) and the forming trend line (from point A to point C drawn in blue) would act as support and OIH would continue its way up, but in fact the opposite took place: the 13:30 bar closed below S1 and the trend line. The next bar was a NRIB below S2, and that was my trigger bar.
I drew my fib line from the previous day high to the ORL and I exit my full position at the 38% fib ext. But I should have taken a partial there and hold the rest till EOD.
6 comments:
Anarco,
I am glad to see you are back and making great trades. Thank you for the great analysis of OIH. That was a perfect and well thought out trade.
Thanks,
Tyler
Hey Tyler~
I was just catching up with your blog. Nice work on SLB today! I totally missed that one (although it is on my WL).
Cheers,
Nice Anarco,
It's interesting how charts of different instruments (stock vs. index) can look so similar, but I guess some stocks closely follow the general market while others don't.
Your chart looks a lot like my YM chart for today. You entered at a really sweet spot and held it well.
Good trading,
-AT
Thanks AT!
I am also trying to learn how some stocks follow the general market movement while others seem to lead.
For example, look at AMZN and the Qs in the 5 min chart. Today AMZN was leading. Although both gapped down, AMZN reversed at the 4th bar while the Qs chopped around and reversed at the 10th bar. AMZN reaches morning swing high at 10:45 and the Qs at 11:05. I saw all this in real time, but could not really make myself trade the Qs, because I did not see a valid setup.
Another interesting point that I am observing and maybe even more meaningful that leading vs lagging, is the areas of support and resistance. Take for example AAPL vs Qs in the 5min chart. Both gap down and reverse at the 10th bar, but AAPL can not take price above the previous day low. While the Qs do. So, I thought AAPL presented a more bearish chart than the Qs. Anyway, something to keep thinking about ....
Cheers,
Here's a little more from X on the
"one vs. the other" theme if you haven't read it already.
-AT
Yeahh... that was a nice analysis.
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