I have a love and hate relationship with PCLN. Once in a while it offers great profit, only to take it back, r by r. Today again I had a losing trade in PCLN. But I was able to compensate for it with a nice 30 min dummy setup, that worked out great.
There was not a lot of movement in the market all day. After the gap up it stayed pretty much in range.
The 30 min dummy setup was a reverse head and shoulder on the 1 min chart
- PCX gapped up slightly on high volume and made a 20 day high
- Daily chart looks like it has room to move up
- PCX had a great run in the morning but pulled back gently for about an hour
- The 6th 30 min candlestick was a hammer
- The dummy bar was in fact a nice 1 min head and shoulder pattern
- Entry at 19.30 with a 10 ct stop
- Exit 1 at 19.50 =2R
- Exit 2 after an avalanche on the 1 min chart @ 20.30
- Result: 2R + 10R=12R/2=6R on the trade
- There was also the 1.1 R loss on PCLN
- 4.9R for the day
- No other trades
