CELG opened near the PDH. First bar is spinning top followed by 2 NRB inside the first bar with volume contraction. Entered on the break of 3rd bar low. My initia trget was intraday pivot at $45.64 but price found support at 20 EMA. Partialled there and exited remaining on the break of 9th bar high. Turned out to be a scalp trade.
I asked Anarco to comment on this trade. Here is what he said:
"Intraday CELG looks great. The first three bars are perfect and the volume pattern is good.
The problem with both CELG and CNQ is that both stocks had a huge bull day yesterday (WR green bars daily chart), so it is natural that buyers are going to defend the PDH level. CNQ works better than CELG, but your execution (as far as I can see) was great.
The nice thing about CELG is that after you exit, it printed a nice rounded base, so you could have taken a target trade to the PDH. Just something to think about.
I also took CLF on a similar setup, but CLF did not have huge day yesterday, so it worked better because it was happening on sellers territory."
I learnt this setup from Anarco's blog. Main criteria for this setup are:
a. Price opens near PDH which acts as strong resistance and price is unable to close above PDH.
b. Next bars are IB's which also fails to close above PDH.
c. Volume contraction in IB's.
d. More than 50% of the candles (from high to low) should be below the PDH and favorable if price closes near the lower end of the candles.
e. Nice if the IB candles are red.
f. Anarco usually targets RZ as an exit point.
Links to some of Anarco's trades based on this setup: GS, CNQ
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