I traded this as a bear flag / short term double top. Whenever I find myself trading the same stock several times in a row, I make sure that I'm not treating the stock as a good luck charm. This was a half decent setup but the one thing I didn't like about it was the volume spike early on indicating that most of the people who wanted to sell probably did so on that bar. But I liked the short term double top look, and I still thought there was a good chance it would retest the ORL. Once DRYS couldn't break 23, not even by a penny, I started thinking about exiting. When USO moved down from 73 to 72 like I was expecting, and other oil sensitive stocks moved in sympathy, and DRYS held firm, I exited. I've started a new way of thinking for exiting. Before I enter a trade I try to visualize how I expect the stock to move. Once the stock doesn't conform to my visualization, I consider exiting.
Setup:65
2 comments:
Rick,
Nice trade in DRYS. Sorry I did not see it until today. I am trying to keep an eye on the 5 minute charts as well instead of just the 15 and 1. Seems like I have been missing some important moves.
Nice trade.
Tyler
Personally, I hardly ever look at 1 minute charts. I try to look at the bigger picture. I do use time & sales (aka tape reading) to see order flow though. That gives me an idea of what's going on in the very near term.
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