[thalestrader]

Originally Posted by thalestrader »

GBPUSD and EURJPY - both short trades, but neither with a terribly attractive R/R profile based on the proximity to potential support. Now, if price reaches that support, and if that support gives way, then you'd be looking at a very favirable R/R scenario.

Both have declined nicely and reached expected support levels. EURJPY currently has +48 ticks open profit from entry and GBPUSD is currently +41 ticks open profit from entry.

[thalestrader]

Originally Posted by thalestrader »

Both have declined nicely and reached expected support levels. EURJPY currently has +48 ticks open profit from entry and GBPUSD is currently +41 ticks open profit from entry.

EURJPY would be stopped out at 132.96 for +28 ticks (natural stop); and the GBPUSD has yet to give us a natural stop other than the one it so kindly presented to us soon after entry at basically breakeven. A sensible stop would have been at 1.6374, which would have been a 50% of open trade equity stop for +22 ticks profit. That may have been premature, as GBPUSD might give us a natural stop and continue its way lower. However, as both are rallying off of anticipated resistance, profit taking is sensible, at least on a portion of the position. A stop above 1.6386 is as close as I can see to a stop based upon what should be resistance.

[BlowFish]

Did you concider a long the break out of the double top a wee bit past the 14.58 time stamp?

[thalestrader]

Originally Posted by BlowFish »

Did you concider a long the break out of the double top a wee bit past the 14.58 time stamp?

I saw it, but I did not consider an opportunity for a long trade. I actually had considered it a short trade. If you look at the 12:03 bar, which made the "2" low of a 1-2-3 reversal, the low was 1.6439. The buy stop for that double top would have been 1.6437, a two tick spread between the breakout and what should be strong resistance. A rally back to that two point (or a decline back to the 2 point in the case of an upside breakout) for a retest is common enough not to want to take a fresh position right into that support/resistance.

In addition to that, I thought that the pattern that had formed between 5:03 am and 8:32, especially as it developed between 7:58 and 8:32, represented a top that would mark the HOD, so I was loking for trades where price was expected to work its way lower.

Best Wishes,

Thales

[BlowFish]

It's one I think I would probably have been in two minds about too. There had been a significant LL however the overall action was narrowing kind of pennant like. That in itself would have made me wary. Guess I should thing about changing some holiday money!

[thalestrader]

Here is a stock - DVA - nice pattern. Buy stop 48.01. If you are using freestockcharts.com, you will see that the hod was 47.95, but that is data from BATS only, I have included the chart from my trading platform, which consolidates the traders from all exchanges, ecn's etc. The hod is actually 48.00.

[thalestrader]

I posted my first GENZ buy in the Stock Trader's Day thread. Here is a second GENZ buy point above the second trendline on this flag. Stop on the whole position is beneath the consolidation at 54.83

While typing this I have been stopped in to the second position, but price immediately reversed and raced to stop me out of my whole position.

Final result: +14 Pennies on Genz

[thalestrader]

Short HESS at 54.36,



This is an excellent short pattern - Mike Reed calls it a "slinky" where price bounces from a low and then sort of just rolls over. Of curse, you will also buy your fair share of low ticks as a stock puts in a double bottom, but the runners you get should make up for the losers. Also, stops should be very tight, as once the new low is penetrated, it should not retrace more than a few pennies above the first low.

Best Wishes,

Thales