Tuesday, April 29, 2008

Gap & Go 123 Pullback - XL

5 minute chart

Stock: XL 5 minute chart
Entry Green Line: 34.49
Stop Red Line: 34.01
Result: .15 to .49
Setup Grade
: B+
Notes: Very nice orderly pullback setup, for a quick profit, be sure you are scaling out. Nice support from the 20 EMA

* Grade is according my rules for each setup outline in my business plan. The grade is for the setup not the end result.

* Feel free to post any trades you made today that you would like commented on

4 comments:

Ryan Schwebel said...

Wouldn't the gap completely fill a good % of the time here? I don't understand why you're getting long here in the middle of a gap, I would think a better entry would be right at the point where the whole gap is filled. Email me at ryanschwebel at gmail if you have a sec, I'd be curious to hear what you have to say. Thanks!

How I Day Trade said...

Hello Ryan,

I look for reasons to get long on a trade by looking at volume and candles, strength and support - this play is explained in my business plan. That is a nice looking candlestick there with increased volume.

Ryan Schwebel said...

gotcha. i'm more into gap filling strategies, so this is sort of counterintuitive for me. Generally, if a gap starts getting filled I'm looking for a continuation but I see you have other factors at play here that go into your decision making.

How I Day Trade said...

I have gap fill plays as well

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