Thursday, January 10, 2008
U-turn
Readers of Trader-X will remember this setup. Look at the chart below - the close of the first bar corresponds with the S2 pivot point (the yellow horizontal line on the chart). After rallying off the open, EGLE rolls over and falls back through that level ten bars later. Could you find a nice candle entry in the next four bars?
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6 comments:
I read traderx for awhile and I don't remember this setup at all. I don't seem to remember anything but fib trades.
Look again, it is there. Just because Tom didn't draw Fib lines doesn't mean you can't. That is how I determine my exits. I think he just posted the chart without Fibs to show the u turn.
Toc C,
Looks like the bread and butter play, fib retracement and reverse. An aggresssive trade -7/5" or -13,-15/5". -4/10" looks even better. All the dry shippers went down Wed: drys exm dsx tbsi
the entry is the narrow range inverted hammer (gravestone doji) at R (yellow line).
BTW, that is a huge volume bar later in the day? block trade?
should add the high of the entry bar was at 5MA resistance
Nice chart. I would have entered on a break of the 13th bar low.
Keep up the blogging!
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