The 30 min dummy setup caught my eye. I zoomed in on the 1 min chart and found a 2 min base with a double bottom with a slightly lower second low.
This slightly lower low can often trigger the up move. At the same time the market (QQQQ’s in this case) bounced from a sort of D-pattern. I entered CHL at the break of the 2 min range. I got a bit of positive slippage and was in at 87.48. First target was 88.50 but I entered a limit order for half at 88.45.
I put the stop on the remaining half at breakeven, and after a new high the stop was set pretty wide below the reaction low, 87.87. Over dinner it just got hit (87.85 was the low) .
The worst part however was not the stop getting hit but not getting in again when again it made a sort of reverse H&S on 2 min chart and started another up leg…
I did notice it in time but – wanting to protect the nice profit I already had – skipped it for no good reason. Good reasons being reasons you could explain to another trader without feeling stupid…
by Will
03 May 2008 at 13:17