The chart below shows the 15 chart of MOS for today and you can see how the line slightly below $40 held as support during the capitulation on Friday. It also held as support during the first hour of today's session holding above that line on closing basis. I liked 4th bar hammer-like but volume was low and I was not totally convinced so I waited for a more clear indication (I should have scaled in). I entered after a WR bar and a doji that closed above the 5EMA. I held until the end of the day and it worked very well.
Friday's trade was more risky (I find the capitulation trades to be in general more risky) but it worked. I managed it with the 1min and 5 min chart. I think it is good to have a realistic target in mind for these trades since it is unlikely that the buy action will have the same force as the sell off.
4 comments:
Congrats Anarco!
Anarco how do you derive your watch list? Do you do new scan every day or use the same watch list?
Very nice Anarco.
Thanks guys! I have to keep it up now :-)
X, I do use a WL and I also run scans.
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