Online Stock Trading | Apollo Group Inc. - 5 080406
The online trader was looking for a trading setup and found one for Apollo Group Inc. on it’s intraday 5 minute stock chart. He was free to short the stock as soon as the trigger was hit. The stock of Apollo Group Inc. bounced nicely into the 10:00 am reversal time period. As soon as the 6th bar was trading below the previous bar, the online trader executed an order to sell short below 44.95. He was filled and placed his stop a penny above the day’s high.
With the nasdaq in a downtrend most of the day, the trade was left to form pivots. This ended up being over a 5R trade as the stock of Apollo Group Inc. was covered near the close as trailing stops were tightened. Another successful trade without emotions for the online trader.
This entry point stock pattern will be designated as a BS2 or Bear short 2. It’s valid in any time frame. 3 to 5 bars trading up followed by a lower low on the next bar triggers it. A stop is placed above the highest bar.
August 9th, 2006 at 2:40 pm
[…] Like the trade last week in Apollo Group Inc., the online stock trader took a BS2 on Baidu.com, BIDU today. The pattern on the daily stock chart of Baidu.com shows the stock in a nice downtrend. Entry point is a lower low which the stock trader received today. […]
August 16th, 2006 at 11:05 pm
[…] It was not an easy fill as the ETF fell fast after the trigger. The trade would be closed by the end of the day. Yet another example of a BS2 as traded on Apollo Group Inc. […]
August 17th, 2006 at 10:39 pm
[…] A trading entry was found on the 15-minute stock chart of TXU. Similar to the entry of Apollo Group Inc., this trade wasn’t as successful. The BS2 pattern hit and the stock was sold short at 63.48. A stop was placed .15 above the day’s high to avoid shakeouts. Note the stock peaked above the day high once by a few pennies. R = .40. Target was 1.5 R for 1/2. You can see not much happened. The stock was held until the last 10 minutes when it was sold at breakeven. […]
August 23rd, 2006 at 10:46 pm
[…] A technical pattern emerged in this ETF on Friday and was entered on the uptrend. Note the three last pivots followed by the higher high. A stop was set below the all-time low as this is one volatile equity. That’s the kind we like to trade! Risk, R was set accordingly, and the target was set at 1R for this first time trading the MZZ. 69.65 was the low and the trigger hit over 71.65. 73.65 was the target. Note that this pattern the BL2, Bull Long 2, is opposite the Bear Short 2. With the BL2 the trader waits for a higher low pivot followed by a higher high candlestick, for entry. […]
September 6th, 2006 at 4:27 pm
[…] A BS2 was spotted in US Airways, LCC. Unfortunately, I passed on it as the stock wasn’t really in a downtrend on the daily. It pays to pull the trigger and not let emotional bias get involved. […]
September 19th, 2006 at 11:02 pm
[…] The stock looked like a great short in all time frames. The daily chart caught the longs off guard opening below yesterday’s low after closing near the high as in the Bear Short 1 pattern. The 60-minute chart portrayed a BS2 signal and I was filled short using a BS2 pattern on the 15-minute candlesticks. Risk, R = .34. I decided with all charts lined up a target of 2R would be set. […]
September 29th, 2006 at 6:12 pm
[…] The first trade in KYPH, Kyphon Inc. was executed using a BS2 trading pattern. Having a stock trading system that allows you to execute your trades automatically, takes the guesswork out of knowing if the trade should be taken. Once you learn a few patterns, it boils down to trading psychology. That’s where it gets tough! […]
October 18th, 2006 at 5:54 pm
[…] I was looking for the stock to form a BS2 day trading pattern. It seemed to be a move heading fast and furious into overhead supply. I cheated, and sold the stock short at 35.35 with what felt like a capitulatory move. R ended up = to that 5th topping candlestick. This happened, because I took an amount of shares which would allow a little upside to the entry. A stop was placed at the day high. I then covered the whole trade at 34.99. This was too soon, as the stock fell another 2 R before bottoming. […]
December 21st, 2006 at 10:20 am
[…] Writing and assessing my online trades: To help me become a better trader, I began this weblog in 2006. I believe it has helped define a few trading patterns that I can use over and over again. It really helps going over your trades to determine where your mistakes are, and point out your strengths and weaknesses. I set up the trading patterns category, and trackback to my first example of the main day trading patterns I use (eight, so far). The cool thing is that now I can go to that original stock trade, and refer to all the other trades that use that pattern too. This will show me if I’m better at trading certain patterns than others, or if I tend to enter or exit trades early or too late. The Bear Short 2 signal for example, has eight references to other trades I made using the same pattern. For 2007, I will set up a trading patterns page that shows all the patterns in a cleaner format, and on one page. Then I can link to each of the pattern examples I’ve already created. […]
February 1st, 2007 at 11:04 pm
[…] I’m not into scalping a stock like GOOG. Watching the 15-minute chart cut out plenty of the noise, and set up a pattern I frequently trade. Both the 20 and 50 dma’s were trending down. When the shares bounced, and got near the 20 moving average, I waited for a lower low to short the stock. A stop is placed above the previous bar, or the high of the day based on your risk tolerance and time frame for the trade. The action was fluid, and called for a tight stop for this GOOG trade. Lower highs and lows the rest of the day. When a stock is trading so fluid, I’ll usually set pivot stops. Once it breaks a lower pivot, the stop moves lower, and targets are exited when reached. […]