Trade explanation:
On the setup chart we can see that EQIX consolidated at lows and formed weekly NR7 bar (narrowest bar in last seven days). NR7 bar is always signal for possible action after consolidation. On the chart we can see that the EQIX has room for break down until 200sma support area. That happen last week and we took it under $68.50. For stop I used gap down (02/29/2008) resistance area what was also high of the day. We can see on the intraday charts that EQIX had nice and steady move down without strong daily bounces and reached target area at 03/06/2008. With over all uncertainly market action I didnât want wait for more and exactly 200sma weekly support area and we closed EQIX at Thursday (03/06/2008).
Trade explanation:
On the trading results we can see that Friday FTK setup was our second trade. Day before FTK was nice to us and with nice 15 min base there was no reason to not try again. Setup was under 15 min base (under $16.00) and stop was above base ($16.20). After setup, FTK dropped very nice without tricks. On the weekly charts I saw that FTK had room until 200sma support area, but honestly, I didnât expect that strong weakness and since $15 area is strong number support area I decided to close trade. It was day trade, and we god really nice risk reward and I think that we can be happy with it. FTK was classic move-rest-move trade. Rest (base) was our tool for good risk/reward.
Trade explanation:
It was classic day trade. Move-rest-move. We used 10sma bounce possibility for trend continuation and for equal move target area. Breakup pace and volume was strong and that was enough reason that we expected target area. PRGO has room for $40 area but last week market action didnât supported more trend continuation. I think that is very clear trade.
Company Profile:
BMC Software, Inc. and its subsidiaries develop software that provides systems and service management solutions for large enterprises. It operates in four segments: Mainframe Management, Distributed Systems Management, Service Management, and Identity Management.
Sector: Technology
Industry: Application Software
Trading Strategy:
On the Monthly chart we can see that BMC forming triangle pattern and possible 3rd try triangle pattern. It is uptrend stock and that is one of my favor patterns. It is still not on the monthly triangle breakup point, but if we take a look at weekly chart we can see nice âearlyâ position trade opportunity. Weekly chart also formed 3rd try breakup possibility with continuation pattern what will increase possibility for good risk reward trade. I will look for buy above last week high with stop under last week low what will be start for swing trade what can easily turn to position trade based on monthly 3rd try triangle possibility. This is good example of my work. I always try to find setup on multi time frames to increase reward and cut risk for low risk setups.
Sector: Industrial Goods
Industry: Residential Construction
TRADING PLAN
Entry price: above $46.17
Stop price: under $43.12
Target area: $55-56 areas
Chart explanation:
After weekly downtrend, MDC consolidate and forming reversal pattern. On the weekly chart consolidate under 100sma resistance area and I will look for breakout and for move in to 200sma resistance area. It can turn to position trade. For stop I will use 10sma. We want see strong breakout with higher volume what will be indicator for buying interest. First resistance will be $50 as number and previous high and in breakout possibility we will see behavior at that area. Note that action can be whippy so we need to use proper stop. For start will be under last week bar.
Entry price: under $49.00
Stop price: above $49.43 (day trade) or 50.61(swing trade)
Target area: $48 for day trade â open for swing
Chart explanation:
I love when I find support on several time frames for possible setup. That is case with SGR. We can see on the 30 min chart that SGR forming bear flag what is opportunity for day trade, but it is also opportunity for swing trade because of daily bear flag and third try to break down. If day trade will work that can be trigger for swing trade what could increase risk reward on high level. On the weekly chart SGR forming triangle what is another opportunity for longer swing trade. This is example where all kind of traders (fast, day or swing) can use same stock charts.
Company Profile:
Developers Diversified Realty Corporation (DDR) operates as a real estate investment trust (REIT) in the United States. The company engages in acquiring, developing, redeveloping, owning, leasing, and managing shopping centers, mini-malls, and lifestyle centers.
Sector: Financial
Industry: REIT-Retail
Chart explanation:
It is first time that I will use DDR for position trade and for chart of the week column. Reason for that is DDR possibility to be used as day, swing and position trade. That mean we can use day trade trading plan what can turn in to swing or position setup and that could increase risk/reward to really high level. It is just important to use proper trading plan. For swing trade it is explained on the site in the chart of the week column and we can use it. If 60 min triangle will be broken to upside direction DDR will stay on watch list for swing or position trade until will stay in the pattern.
