Sunday, April 23, 2017

30 Minute Candlesticks - Winner and Loser: WRK and BHI

Here are two 30 minute trades from last week
 
First is BHI - gapped down and pummeled all day. I am looking to find Narrow range bars within the 60 minute range - and as you can see by the yellow box I took this range outside the box ... because I wasn't paying attention and was doing 3 or 4 task's at once. Stock was already extended on the day despite the nice NR7 setup . I shorted at the low of the green bar (bar 8) and was stopped out. This is a great example staying inside your rules and not trading tired or distracted.
 
Second chart is WRK - Strong prior day and on my radar. I like NR5 and NR7 bars (narrowest range of the past 5 or 7 bars). Bar 3 on day two formed a NR7 for a winner.
 

 




* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money.  Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.

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Disclaimer

I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE