Started the day with 2 forced trades that ended in losses. I just become so impatient when I cannot find any trade within the first hour and force myself into some stupid ones. The first thing I have to learn is to be patient, wait for the trades to develop, not rush into them. I don't know if impatience is the trait of a new trader or is it just me?
Later at noon, I saw a pattern forming on a 5 min. chart of WB, which looked like a C&H. I have not traded this pattern before but have been learning it from Jamie and his blog.I you haven't checked out his blog yet, here is the link.
There was volume contraction when the handle was being formed and it formed NRB's too. After 2 losing trades I did not want to risk much. So I took a small long position on the break of the handle base. There was volume expansion on the breakout which gave me confidence that the pattern may be successful. I covered my entire position at 50% fib. extension.
6 comments:
Yeah, that was a perfect C&H. One of my favorite chart patterns. Nice job!
Thanks Jamie for visiting the blog and your help.
Beautiful trade!
I had WB on my watchlist on Friday but missed this one. Congrats.
Thanks Anarco. I am learning to spot C&H pattern on charts.
"There was volume expansion on the breakout which gave me confidence that the pattern may be successful."
Very nice indeed
"I covered my entire position at 50% fib. extension."
As per Jamie, the typical move for a C&H would be 100% extension so it looks like you left some money on the table. When things all work in your favor, ie pattern develops, volume expansion on breakout then you should be looking to reap the most out of it.
Oh yea, about your comment about getting impatient. It is definitely something all beginner traders struggle with.. at least for me.
Keep up the blogging.
pdt,
I do agree with you about leaving 50% profit on the table. It did reach 100% extension. After 2 losing trade, I just wanted to be on the safe side. I am yet to start with taking partial profits and let the remaining run.
Thanks for your comments. Keep visiting the blog and commenting on areas where I need improvement.
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