Got into a new trade today with DDR. Here's the chart:
The "official" entry on this was Friday (yesterday was a holiday and the markets were closed). This is what we've got - we've got higher lows with the sellers holding the line just under $14.50. Technically, you could call this an "ascending triangle" - it doesn't matter what you call it - the buyers keep coming in and buying this stock at higher and higher prices so we are bound to get back up to that $14.50ish zone and very well MIGHT blow beyond those sellers for a breakout.
My trade is simply to get back up around that last high before the sellers step back in - so right around the $14.25ish area.
One thing I want to show you is what happened in just today's trading - here's a 5 minute chart of that. Nevermind the green, it's just my highlight. However look at the last few candles with that blue circle - notice how those prices jumped up! Now, look down at the corresponding volume - nice spikes in volume while those prices jumped up. This tells me that the buyers came back in at the end of the day and started pushing those prices back up. That's exactly when I got into this trade.
Sometimes, by honing in even further via an intraday chart, you can get an even better idea of what the buyers and sellers are doing.
Enough of my soapbox. I bought the April 12.50 call for $1.48 and expect this to get back up to the $14.25ish zone in about 2 weeks or so. Or, it can go sideways. Or, it can go against me and stop me out (yellow zone). Or, just whatever. I really don't care, as I'm trading with an edge and with a systematic approach and with the help of the LORD, I'll continue to prosper in my trading.
I'm now full in my trades. I can't take on any more trades until I start taking profits. I generally trade 50% of my total trading account. Why? Because if the market falls apart then at least I've got 50% left to rebuild.
Let's make some profits now.
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