Friday I caught some quick moves on AAPL, but nothing worth posting. Today I had one winner and two scratches.
AKS gaped down, and pulled back to the ORL on decreasing volume. At that point it printed a NRIB that closed below the ORL and had the 5 MA right on top of it. It looked as if it was the perfect set up. I shorted the low of the 6th bar. Price moved slowly at first, but then accelerated down. It paused however just below the low of the day. It printed an red inverse hammer, which I thought primed it for a break below the day’s low on the next bar. Unfortunately, it worked it’s way back up to the ORL and stopped me out. There was another opportunity to go short again below the doji of the 18th bar, but it closed just above the ORL and above the 5 MA, so I passed. The trade ended up being a scratch. I could have closed it out when it pulled back from the day’s low, but I didn’t have much of a profit, and decided that it was worth the chance to see if it would break back down, knowing it would not be worse than a scratch trade.
SU gaped down with a nice red bar, consolidated, and printed a nice red inverse hammer doji. Price closed in the lower 25% of the OR, and printed two inside bars. Once again, looked like the perfect set up. I went short the break of the low of the 3rd bar. Price initially moved in my direction, but then came back up into the OR. I watched it climb right back up and take my stop out, just below the 5 MA. This looked suspect. I am not a “Market makers take out the stops type of guy”, but this just smacked of it. I almost immediately went short again as it turned back around, and sure enough it fell straight down, then below the ORL, printing a red inverse hammer on the 7th bar. I thought it was poised to break the low, it did, but went nowhere, and it ended as a scratch.
Winner, winner, chicken dinner. AAPL gaped down, tried to rally, but was penned in by the 5 MA. The 3rd bar was long, red, and weak, bouncing off the ORL. The next bar broke the ORL, and two IB’s formed, the last being a marginally hammer doji. I entered on the break of the 6th bar low. Price fell nicely towards the Fib extension. I thought I might have blown it when it bounced off the round number on bar eleven, but it was unable to close above the midpoint between the ORL and the Fib, as well as staying below the 5 MA. It based for a couple of hours, and then dropped to the Fib extension. I closed it on the way back in on the 22nd bar (87.65), instead of when it hit the Fib on the bar previous, becuase I thought there was a decent chance it could keep going, as it had been basing below the number. Good for 4R.
