Wednesday, April 16, 2008

Setup Du Jour


Pat said...

I know you always buy when there are good candle pattern.

Do you also combine volume as part of the consideration factor?

Stewie said...

Pat. volume is what gets me to put on a trade with big size. If i don't see volume, i am not as excited by the trade. Volume equals conviction!

Pat said...

AG showed a great pattern as your drawn. Volume cames after your entry and confirmed your trade.

So does it mean, this isn't a big size trade as AG didn't have volume from the open thru your entry?

Stewie said...

you be correct sir. i went 500 shrs first and i actually added to it as it started to accelerate upwards. usually a powerful setup like i wanna see strong volume kicking the stock up, then a nice low volume consolidation pattern(wedge, coil, pennant) and then i'll buy into the apex of the pattern and hope for that my timing is correct, i always start small and add as the pattern gains credibility.

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