Tuesday, August 2, 2016

ERY Trade : Step by Step Explanation

Coming into today, I was looking for a continued weakness in Crude Oil and/or Energy stocks a whole based on recent chart action that has been getting quite bearish.

Yesterday: I tweeted this ERY Daily chart to 'ART OF TRADING' members around mid day:

"Keep an eye on this ERY going into today's close and/or tomorrow morning for an entry. We might do an alert ERY soon.
I love this bottoming pattern"

I didn't want to chase a 10% pop in ERY so I waited on sidelines and wanted to see a gap down or a weak open for ERY and then look for an entry.

So Tuesday morning, ERY gapped down at the open and then I started to look for good spots to enter based on the 5 minutes charts: See chart below:

Entered ERY long at $16.25  ------ Sold it at $16.85 for a 3.6% gain in about an hour and half holding time.

Even tho ERY probably has more room on upside, I tend to walk up my stop losses fairly quickly to lock in gains when I can.

Hope this post was helpful!
Good trading !

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