Candles and candles only

[stocktrader]

Hi indahook,
Thanks for starting this thread I am sure many people will be able to learn a lot from it. When you get a chance would you mind answering the following questions.

1. How do you enter a trade, assuming you wish to go long at a couple of cents above the high of yesterdays hammer do you place a stop order the night before, or do you monitor the stock in real time the next day and see if it is going to break above yesterdays high?

2. How do you arrive at your target price, do you use previous areas of support/resistance as likely targets or do you simply look at the size of your risk (entry price minus stop loss price) and double that value to arrive at your target price?

3. How do you take profits, assuming the trade moves in your favour and hits your price target do you immediately close the trade and take your 2R profit or do you scale out, or do you use a trailing stop system, if you use a trailing stop, can you provide some detail as to how you implement this?

 

[indahook]

OCLR close 17.78 high 17.8
ZMH close 44.16 high 44.19

Not much came up in my scan this morning. I actually went long ZMH right at the close at 44.17 with my stop in at 43.30 (the previous days low -.01).

High short interest in OCLR the last time I checked.

 

[indahook]

Here`s a chart of ZMH.....looks to be in a clear short term down trend....maybe a quick pop???

 

[indahook]

Quote from stocktrader:

Hi indahook,
Thanks for starting this thread I am sure many people will be able to learn a lot from it. When you get a chance would you mind answering the following questions.

1. How do you enter a trade, assuming you wish to go long at a couple of cents above the high of yesterdays hammer do you place a stop order the night before, or do you monitor the stock in real time the next day and see if it is going to break above yesterdays high?

2. How do you arrive at your target price, do you use previous areas of support/resistance as likely targets or do you simply look at the size of your risk (entry price minus stop loss price) and double that value to arrive at your target price?

3. How do you take profits, assuming the trade moves in your favour and hits your price target do you immediately close the trade and take your 2R profit or do you scale out, or do you use a trailing stop system, if you use a trailing stop, can you provide some detail as to how you implement this?

I hope anybody benefits, but after all this is clearly for entertainment purposes only.

1.Buy stops are entered right on the open. I do watch all day long. Although I made an exception for ZMH yesterday.
2. My tgt price is arrived by taking a 2-1 ratio from my stops. For instance, bought ZMH at 44.17 with a stop at 43.30 (previous days low -.01) and a tgt of 45.91 (double my sell stop of .87).
I will position size according to the fixed $ amount I risk on each trade
3. I do not use a trailing stop system, although with all the money I left on the table the past 4-5 weeks I would have made much more money. I like to keep it simple with clearly defined stops. Normally the stops I use for this type of swing trade are placed at the previous days low (for a little wiggle room)

 

[swimmus]

BAC proved to be a powerul trade off of the hammer it made. I will look to incorporate more hammers into trading. Thanks

 

[indahook]

Quote from swimmus:

BAC proved to be a powerul trade off of the hammer it made. I will look to incorporate more hammers into trading. Thanks

Yup..thanks for that one. I had my plate full with overnights so I scalped that one for a half point. Still going.....

 

[indahook]

Just spent 10 minutes typing a post with 15 hammers and one chart and got a message that said "the file is to big" and it deleted all that work.
Sorry but I do not have time to retype everything, so here is my fav for the day.

CMA close 47.3 high 47.42

 

[stocktrader]

Hi indahook,
if you are going to be making a long post on any message board, its always a good idea to do it in word and paste it to the message board or alternatively make a copy and put it in clip board. It can be extremely frustrating putting together a long post, sending it off and then loosing it.

Anyway I hope you keep up posting to this thread I find it very interesting.

 

[stocktrader]

What do you think of the hammer on DIS on 06/26/03. I don't know if you have read A. Farley's book but he likes to see cross verification on points of support or resistance. I can see several points appearing on the 26th, here they are.

1. You can draw a trend line starting from 03/12/03, and connect it with the low on 05/21/03 and again with the low on 06/26/03.

2. The $19 area acted as resistance on several occasions in April and May, and so may act as support now.

3. The 50 day SMA is currently acting as support for this stock.

4. If you put a Fib box between the low on 05/21 and the high on 06/06, then the 62% retracement line is also around the $19 area.

 

[indahook]

Quote from stocktrader:

Hi indahook,
if you are going to be making a long post on any message board, its always a good idea to do it in word and paste it to the message board or alternatively make a copy and put it in clip board. It can be extremely frustrating putting together a long post, sending it off and then loosing it.

Anyway I hope you keep up posting to this thread I find it very interesting.

Thank you for the advice......