If the trend is up and momentum in the range is positive, the second bounce in a range is often a better entry then to wait for the breakout because it can improve r/rw by a factor 2 to 4
Archive for the ‘2 wave pullback’ Category
Do the opposite of what I feel like…
I used to buy when a stock moves up and sell when it goes down. It took me a long time to realise that this might feel nice, but really does hurt profit potential. Toni Hansen showed me the importance of momentum. IPG was a strong mover in the morning but came off the highs. [...]
Too late to short, to early to buy
The market opened with a big down gap. Gaps usually fill… sometime. All morning long I had this feeling that it really was too late to short but too early to go long. However, over noon the pace of the market shifted on the 5 and 15 min charts and CME (on the list of [...]
Upday
I expected an upday for today, since the daily charts in the indices were pretty extendend to the downside and yesterday was a consolidation day with some positive pace development in the 60 min ranges.
The indices gapped up slightly and broke the morning high. At last, I could go look for a few nice longs.
The [...]
BRCM two wave pullback
BRCM gapped up big time, moved nicely off the opening range. I missed that move but into lunch it had retraced almost the complete move. What caught my eye were several things.
It had found support on the morning range bar.
there was a nice 2 wave pullback
Especially the pace development in the pull back was [...]
Here comes the sun…
Solar Power to the rescue… I missed most of the shorting ‘fun’ today, had a few scratch trades. In the afternoon the market started a reversal and I spotted FSLR. It had a 1 min 2 wave pullback and a nicebase after that. As the market was consolidating at the same time it was the [...]
Bear market
Somehow my natural inclination is to go long stocks. Once a bear market start I am usually in trouble first, until I readjust.
Today I had a few good trades, IBN was one of them, but I kept anticipating the market reversal.
I traded CIEN long twice, only to be stopped out. It was all very obvious, [...]
Nothing great…
Click the chart for an overview
This was a very nice trade. But there could have been more in it. A lot more!
CNQ gapped up and formed a nice base. Just before 11.00 pace changed. The first wave down was the steepest. The second wave was a lot slower and the third wave stayed even more [...]
Tiny 2 wave pullback
big momentum move
consolidation
red lines are initial and trailing stops
1st pink line is long entry ( 8.67)
2nd pink line is partial exit (8.93)
3rd pink line is closing trade (9.25)
risk was 0.13, reward was (0.26 + 0.58)/2= 42 cts or more than 3R
