Posted by zboy2854 on 16th of Mar 2015 at 11:14 am
Question Steve. If I had wanted to trade the breakdown out
of the sideways channel on the daily chart, would it have been
valid to trigger off the break of the lower trendline itself?
If so, where would my initial stop have been placed?
Thanks!
zboy..trendline break would be one valid trigger with a stop
around 50 (recent highs and 9 day EMA). Since the sector has
been under pressure due to falling crude, this supported the
trade.
zboy - EMES was my short idea in Monday and Wed's newsletter.
In answer to your question, remember there's no one way to
trade these stocks, will depend on your style, risk tolerance, etc.
For example on EMES - let's say you traded the break of the
trendline, since as Steve said the sector was weak. Your
initial stop depends on you, though; one could have had a stop say
above the 9 EMA, or maybe even just above 50% of Friday's down
candle, though that would be quite tight unless the 60 min
validated it. Which is a good point, always look at your
intra day time frames as well such as the 60 and 15 min along with
the daily chart. Now after the good move, one could have
covered 1/2 or even 2/3 to lock in profits then set a wide stop on
the rest as sometimes price will go back and test the broken
trendline and find resistance there.
Now on a 60 min time frame you will notice that EMES set up as
an RVM bounce trade as price got to far extended from the 9 EMA
thus it has a nice intra day bounce - shorter term trades could
have recognized that and locked in profits there, while busy day
jobs folks would not have. See the image
Short EMES Update
Posted by steve on 16th of Mar 2015 at 10:08 am
EMES - Chart Link
Energy stock continues lower..trim and trail
Crude Oil making new lows
Posted by steve on 16th of Mar 2015 at 10:30 am
Crude Oil making new lows
Question Steve. If I had
Posted by zboy2854 on 16th of Mar 2015 at 11:14 am
Question Steve. If I had wanted to trade the breakdown out of the sideways channel on the daily chart, would it have been valid to trigger off the break of the lower trendline itself? If so, where would my initial stop have been placed? Thanks!
zboy..trendline break would be one
Posted by steve on 16th of Mar 2015 at 11:18 am
zboy..trendline break would be one valid trigger with a stop around 50 (recent highs and 9 day EMA). Since the sector has been under pressure due to falling crude, this supported the trade.
Great, thanks!
Posted by zboy2854 on 16th of Mar 2015 at 11:22 am
Great, thanks!
zboy - EMES was my
Posted by matt on 16th of Mar 2015 at 12:48 pm
zboy - EMES was my short idea in Monday and Wed's newsletter. In answer to your question, remember there's no one way to trade these stocks, will depend on your style, risk tolerance, etc.
For example on EMES - let's say you traded the break of the trendline, since as Steve said the sector was weak. Your initial stop depends on you, though; one could have had a stop say above the 9 EMA, or maybe even just above 50% of Friday's down candle, though that would be quite tight unless the 60 min validated it. Which is a good point, always look at your intra day time frames as well such as the 60 and 15 min along with the daily chart. Now after the good move, one could have covered 1/2 or even 2/3 to lock in profits then set a wide stop on the rest as sometimes price will go back and test the broken trendline and find resistance there.
Now on a 60 min time frame you will notice that EMES set up as an RVM bounce trade as price got to far extended from the 9 EMA thus it has a nice intra day bounce - shorter term trades could have recognized that and locked in profits there, while busy day jobs folks would not have. See the image
surprise surprise
Posted by matt on 16th of Mar 2015 at 10:34 am
surprise surprise