AET is an example of a trade that I tend to avoid during early
trading (one must be very nimble to consistently trade this
successfully). AET gapped up and ran up during the first 15
minutes of trading. After yesterday's move this had the stock short
term extended (overbought) on many intraday time frames. I would
prefer to see a pullback first and them move higher (versus gapping
up). This is what I refer to as a Red to Green move. I hope
this helps to clarify my earlier comments.
I find consolidating patterns easier to trade since they have
yet to have a bigger move. One example would be VVTV which had
consolidated for several days before moving today.
Steve, thanks very much for your comments on standing aside at
the opening unless there is a clean pattern with a tight
consolidation -- Do you apply that rule to gaps (assuming they
aren't too large) as far as entering a trade right after the
open?
Here's a nice setup I found this morning on the 5 minute chart
on IWM. It seems like it fits your criteria for a trade that you
can take as soon as the trend line is broken….
Opening Trading Discussion
Posted by steve on 17th of Sep 2014 at 11:50 am
AET - Chart Link
AET - Chart Link
AET is an example of a trade that I tend to avoid during early trading (one must be very nimble to consistently trade this successfully). AET gapped up and ran up during the first 15 minutes of trading. After yesterday's move this had the stock short term extended (overbought) on many intraday time frames. I would prefer to see a pullback first and them move higher (versus gapping up). This is what I refer to as a Red to Green move. I hope this helps to clarify my earlier comments.
I find consolidating patterns easier to trade since they have yet to have a bigger move. One example would be VVTV which had consolidated for several days before moving today.
Steve -- do you apply your early trading rules to gaps the same way?
Posted by puma on 17th of Sep 2014 at 03:17 pm
Steve, thanks very much for your comments on standing aside at the opening unless there is a clean pattern with a tight consolidation -- Do you apply that rule to gaps (assuming they aren't too large) as far as entering a trade right after the open?
Here's a nice setup I found this morning on the 5 minute chart on IWM. It seems like it fits your criteria for a trade that you can take as soon as the trend line is broken….
Here's the chart
puma..that was a very objective
Posted by steve on 17th of Sep 2014 at 03:43 pm
puma..that was a very objective intraday trade setup on IWM. Nice consolidation preceding the move.
Steve, This was a really
Posted by hastur on 17th of Sep 2014 at 12:48 pm
Steve,
This was a really good post - please post more like it! For those of us on the learning curve, these mini-examples are a great help.
YW hastur and I'm glad
Posted by steve on 17th of Sep 2014 at 12:55 pm
YW hastur and I'm glad this example was constructive. I will try my best to throw out little tidbits but I'm not perfect.