Shared by
oly_BOWS
I liked the gap up over recent price action. I also liked the volume coming in on the open green candle. I took 3m orb off 1 candle, aggressive and went against me.
Pretty much top ticked this sucker
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-02-03 09:33:58 | KTOS | buy | $9.150 | long |
| 2014-02-03 09:45:02 | KTOS | sell | $8.680 | 0 |
Comments
silverholden
That first 3 min candle is a red flag for me with the extreme wick on top. I would have wanted it to settle out a bit.
jco1987_BOWS
To me, nothing was wrong with where you bought it. I understand this play, if it can bust out over 9, its going to go. After all it was a Big earnings winner last week and 3.5 billion $ contract news this morning, I thought it was going to rip today. I made this same mistake and I miss managed my initial stop. On a 3min ORB, its either going to rip up 3-6% or fade off. Looking back on my trade and yours, we should've stopped out when it broke back under $9.
I ended up reversing my position around the same point where you bailed and got my money back and ended up a green. It just couldn't make up any ground to pop back over MA's and VWAP plus price action was weak due to the overall market.
jmoscate_BOWS
This one was very tempting especially when it kept trying to get over 9 but there was resistance and it just couldn't hold that area like Philnomenal said. Like jco1987, i do not think there is anything wrong with the entry as you have to be quick on ORB's. It is also a tricky play (for me) when they have long wicks because if you buy once it breaks the wick, it might seem like a chase or a top. Remember, it is a #'s game and this play will most likely work in the long run.
mick9800_BOWS
Kunal advises that for ORB you should have a minimum of 3 five minute candles in order to take the trade. There is no pattern formed when you enter after 4 minutes.
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This was a gapper but i almost took it as a short within the first 15 min, because it gapped up huge right into resistance at the $9 area on the daily. Not only that it couldn't hold 9 and went right under the VWAP, tested it underneath and then got confirmation on the 4th candle on the 5 min that it was in trouble.