Tuesday, August 9, 2016

Day Trading via a Falling Wedge

This morning I took a day trade in ZBRA which set up nicely intra day in a Falling Wedge pattern...

What I love about Falling Wedges is that the pattern can set up and deliver very reliable outcomes on many time frames, whether it's MONTHLY, WEEKLY, DAILY, 60, 30, 5 or even 2 minute charts as you'll see in this case.

For this ZBRA trade, it was flagged on my Finviz scanner as an Earnings Gapper. ZBRA gapped up after announcing good earnings. Once that happens, I start looking for intra day pullbacks off the open(Via a FALLING WEDGE pattern preferably).

Saw the initial Wedge using the 2 minute charts of ZBRA. Stock started to narrow at the bottom of the wedge, took a small size position of 500 shares at $60.97 ..... stock responded positively almost right away and started climbing, sold it at $61.43 .... A quick 50 cents gain(or $250 profit) in about 30 minutes.



8/9/2016 11:03:41 AM ETZBRA Sold 500 ZBRA @ $61.439
Executed

8/9/2016 10:37:15 AM ETZBRA Bought 500 ZBRA @ $60.9692Executed







Hope this helps you in your trading !


Monday, August 8, 2016

How To Spot a FALLING WEDGE ?

A fellow twitter follower @BuckeyeTrader87 asks me a great question on twitter today about
"Falling Wedges" which surely by now everyone knows they are by far my favorite pattern to trade both INTRA DAY day trading and also for Swing Trading. Spotting them can be quite tricky. Or at least the kind of Wedges I like to look for and trade, these can be kinda tricky to spot.

Adam asked about NFLX .... So here's a more detailed chart of what i'd be looking for in NFLX over next few days/weeks in order for this stock to set up the typical "Falling Wedge" pattern I like to look for.


Below is the 1 year DAILY chart view of NFLX.




I hope this helps !!






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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