X gapped up above a daily PP and the second bar prints a hammer like candle that closes above the PP. There is a lot of white space between this PP and the next PP at $33.5 so it seemed like a good setup to work off the oversold condition, but it all ended in sideway chop.
RIMM formed a base at the ORH which coincided with a PP from 2 days ago. Price touched the PP 3 times, each time making a higher low and with bars contracting in range at the 3rd attempt. Volume contraction was also promissing. Place my buy stop a few cents above the PP and again the buyers had a nice break out, but the sellers took it away on the next bar.
If you have any constructive criticism about these failed trades, I am eager to learn.
6 comments:
Hey Anarco,
I didn't have a good day today either, hopefully we do better tomorrow.
One thing I have been giving a lot of weight in my trading is the daily 5 EMA. I see you are using the 130 EMA on your 15 MIN chart, but for me it is a lot easier to see on the daily.
If you look at WFMI from yesterday, it crossed the 5 EMA and then consolidated before breaking out. I am positive that there are stocks out there that won't follow that, but it is just something I have noticed.
Hope it helps.
Tyler
Hey Tyler~
Your feedback is always welcome. Sharing what I know and what I do not know and learning from others is my reason for blogging.
Regarding my setup, yes I have the 130EMA in both the the daily and one of my 15min charts. And I have two 15 min charts opened simultaneously: one has PPs, trendlines, and MAs, and the other one has PDH, PDL, R1, R2, etc.
I have not been using the MAs so much, but I'll keep your 5EMA advice in mind.
Thank you!
X looks like matching congestion ie. it consolidated sideways for 2 days before yesterday's swoon and now it looks like it wants to base on the other side. Keep it on the focus list. Nothing really to add to RIMM, except that both charts have flat (non-trending) 50 MAs. If 5/20/50 MAs converge, it might add clarity to either these setups.
Thanks Jamie!
My only thoughts on X and RIMM, by just looking at the intraday charts, are that they both started off (despite their gaps up) with a negative bias in the first bar. Also, RIMM showed the pivot area to be fairly strong resistance but I can see your rationale as price was basing.
Hindsight is so easy. On days when there aren't a ton a good candidates to choose from it's easy to convince yourself to get into a position. With RIMM, it looks like you were able to reach 1R before price came back down. Did you partial out at all?
Thanks ooNR7!
I did not partial out because I observed that if the BO pattern does not fail, it can produce a few wide range bars at the BO. Of course the downside of this approach is that if the pattern fails, you are left with nothing or minus nothing :-(
Thanks again.
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