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Sunday, March 2, 2008
LEH - 022908
Here is a simple chart - LEH broke below the R2 pivot (yellow line). It printed a hanging-man type candle, and had pressure from the declining 5MA. I covered just over an hour later when price printed a narrow-range hammer (white line).
Would you share why the 12:20 bar was not a good entry? 12:20 closes below R2, is a narrow range bar, leaves an upper wick, and takes place after a series of red bars that drop orderly and without crossing above the 5EMA. I could have easily been caught in that one. Thanks in advance.
5 comments:
Would you share why the 12:20 bar was not a good entry? 12:20 closes below R2, is a narrow range bar, leaves an upper wick, and takes place after a series of red bars that drop orderly and without crossing above the 5EMA.
I could have easily been caught in that one.
Thanks in advance.
I don't think the next bar took out that bar's low...if we are looking at the same one.
You are right; the next bar does not take the bar's low. But I mostly wanted to know if you would have considered that one a "trigger" candle.
Thanks.
Yes, I would have probably taken it. But, I didn't see it form. I would have used a wider stop, probably above the last swing high.
In general though, I have better luck with the second break, or a break and a pullback.
I always wait for the break and then a pullback. I don't get as many setups, but I also weed out alot of bad ones.
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