(Click On Charts To Enlarge)
Structuring The Trade:
The SSO put in a H&S Top this morning, basis the 1-Minute chart. The neckline was an identical 29.02...29.02. When it broke, that put 28.52 IN PLAY. (29.52 - 29.02 = 0.50 Points. 29.02 - 0.50 Points = Target: 28.52 IN PLAY).
From a short entry at 29.02, that's a gain of 0.50 if the target gets MADE, so we'd want a "logical" stop that is roughly half of that, or better. The two red horizonal lines are the "last highs" (or, "logical stops) before the pattern broke. The first one is 29.17, so the stop the is 29.18; the second one is 29.29, so that stop is 29.30, or a $0.30 loss. That's less than a 1:2 risk reward, so I used the 29.17, which was roughly a 1:3 risk:reward on the trade.
6 comments:
thanks for the compliment on xtrend, but it wasn't because of the HS top...
it was the previous HS bottom...
you can have a look here
http://caldeiraodebolsa.jornaldenegocios.pt/download.php?id=69516
thanks for the compliment on xtrend, but it wasn't because of the HS top...
it was the previous HS bottom...
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Salvador,
Yes, I understand. I was making two different comments, one about your nice exit, the other comment about the H&S Top that formed AFTER your exit.
I'll start being a lurker here if you don't mind...
Best,
Sal
Nice short, Melf. What do you see for Monday?
Thanks, Katzo. I'm lousy at predicting the market, so I just try to follow it as best I can, like playing this little H&S pattern breakdown on the intraday chart.
I liked the "Obama speech shakeout" on Friday, though, particularly the fact that the SSO closed at the high of the day, and the SPX closed above 930. The NASDAQ also looks interesting, with a possible Inverse H&S or an Ascending Triangle nested within a Bull Flag. I'll try to post on that one before the open Monday.
Have a great weekend!
(I'll start being a lurker here if you don't mind...)
Salvador,
Sure. I'm not very consistent about posting, but you're more than welcome to stop by any time ;)
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