Shared by
BDaniel_BOWS
-Recap: Earnings gap up breakout over daily range. Idea was $40 must break and hold and then look for ORB's and flags. First ORB didn't work right away so reduced size by 1/3, giving rest a chance to flag. Was risking off $40.75 area, or about $1.65 Risk and thought could run to $45+, or $2.60 for 1.57R - not good, still feeling out where to set stops on ORB's.
Ended up flagging and popping. First 2 exits (next 1/3) should've been combined as one. Had another entry (see separate 10:08AM trade), which is why didn't exit last 1/3 into 10:15 or 10:45 pushes, but saved for lotto, placing stop under 20 EMA, as thought could have end of day run. Should've given more wiggle.
-Pros: Daily chart and entry.
-Improve: Reward ratio, first exit, and lotto stop placement.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2016-02-17 09:40:23 | FOSL | buy | $42.420 | long |
| 2016-02-17 09:42:32 | FOSL | sell | $41.780 | long |
| 2016-02-17 09:53:11 | FOSL | sell | $42.930 | long |
| 2016-02-17 09:54:14 | FOSL | sell | $43.430 | long |
| 2016-02-17 11:49:34 | FOSL | sell | $43.380 | 0 |
Comments
BDaniel_BOWS
Thanks! That's a reasonable way to think about ORB stops, too. I appreciate it.
Nice entry! Do you typically trade off the 1-minute?
LPeriman_BOWS
Only the 1st 30 mins of the open, and then only on those that are set up on longer time frames.
That's something I may incorporate in my trading as I get more comfortable - I keep seeing moves that look like ORB's (taking out high or low) in the first 10 minutes that I'm not catching on the 5-minute.
When you say set up on longer time frames - do you mean when the intraday is aligned with the Daily chart?
Yes... specifically, when I'm looking for an entry that aligns with the daily chart.
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Nice, well thought out, plan. I thought your entry was a bit high, but that's probably just because my style is mostly anticipating. I know what you mean about ORB stop placement. Not sure there are hard "rules" on that. I just use my best estimate of where I think a bounce is unlikely and get out, then look for reentry opportunity. I played this one too, with a stop in the same place as you due to the 1 min chart box. http://screencast.com/t/awFyCyX6b1