Trade based on 10 min. chart
This trade was based on Trader-X push through method. ISRG was strong at the open. First candle is strong, 2nd is a spinning top and the 3rd candle is also quite strong. 4th candle is red but closes above the 25% Fib. retracement (30 min OR). Entered on the break of 4th bar high. Trade moved in my favor initially and then came back to stop me out at breakeven. After the trade, I remembered Tyler mentioning once that he prefers to go long when the trigger candle is green. I had completely forgot about that.
2 comments:
Day Tradr,
This is simply a case of too far and too fast in the OR. When something moves too far and too fast, it needs to consolidate the move thru either price (a pullback) or time (sideways action) or both. This is especially true if the broad market is flat or opposing the trade direction.
Look back at my RIMM trade from Monday. It also moved too far and too fast during the 30min OR. I waited for a good consolidation period (~2 hours) and a doji formed at support (ORH for RIMM). RIMM consolidated thru time with very little pullback.
ISRG consolidated the OR move with a price pullback and sideways action in the 38-50% retracement zone of the OR.
Thanks Jim for the reply. I really need to be patient and let the setups build.
Post a Comment