Last weekend I posted two stocks that I was looking to trade this week. CSCO had a great pattern for a rally and NTAP also had a crown pattern for a long. Both had a seasonal bias along with good fundamentals.....remember them.
On Monday we were ready to take advantage of our list of stocks, CSCO gapped down and canceled our trade right on the open. Meanwhile, NTAP triggered by taking out the high of the setup bar without taking out the low, (Man were have I heard that one before) and we were long. Some of our trades are just plain stocks and some are done in options....it doesn't matter which one we do for this piece...but we were long.
One of our main reason for taking these trades was that on the weekly charts we found time and price squaring on a major level. Also CB had been talking about this in the futures market....so it was easy to take the trade.
During the course of the week, I was surprised that no one was busting on me about NTAP since it was having problems. Well, when you a trading plan...that is what you do....have a plan and trade it and stop thinking to much.
Yesterday NTAP exploded, right on time.....remember we buy options when no one else wants them and sell them when everyone wants them......Now won't this make for an interesting service......????
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2 comments:
Dennis
"Long when the high of the setup bar is taken out without taking out the low"
Is this the daily bar you are talking about? If so, then you would have to wait for the close on the 2nd bar to long correct?
Good call on the NTAP.
I trade in three time frames....one to find the trade....one to setup the trade and one to trigger the trade.
weekly is to fine
daily is to setup
15m is for triggers.
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