Wednesday, January 17, 2007

Day Trade: Long ICE 30-min chart

Entry @ $129.46 / 500
*** update 11:05***

Before going into the reason why I took the ICE intra-day trade, I will point out first what I saw on the daily chart above. It shows that ICE pulled back to 25% retracement area from the latest price thrust between $103 swing low and $138 swing high . The 25% retracement area would be along $129. The retracement area usually are PIVOT locations where TREND change could happen.


  • The stock printed a HAMMER the previous day with above average volume which could signal a possible bottom. Looking at the 30-min intraday chart, a possible 2-bottom is forming. This is a very aggressive trade.
  • Long entry at $129.46 on the break of the high of the HAMMER cstick from previous day at around 9:36am
  • Initial stop at $127.90 which is below the tail of the HAMMER cstick from previous day
  • Sold 500 shares at $133.50 before the close
  • Trade closed with a gain of $2020 ( +2.5R )

2 comments:

Bubs said...

MC can you explain in more detail why you choose these prices on a 30 minute timeframe? I'm confused why you would take the ice trade at that price? Thanks

Bubs

MC said...

bubs,

I will post my trade analysis with chart later. On a quick note...the 30-min chart shows a 2-bottom price patern. The last candle from yesterday is a HAMMER candle. My entry is just above that candle plus some slippage