There is a saying that appears in a lot of books "Plan your trade and trade your plan". I never did this. I always keep a trade that is on profit until it looks like the trend changed, I never plan my exits. This is the first trade where I'm gonna make a plan and trade it, no matter what happens.
The US market opens in 10 minutes, and I'm gonna watch for the open. A strong gap down cancels the trade. With my risk management rules and my portofolio size, I can buy 100 shares of AT&T. The stop loss will be under the current low. I'm going to close half of the position at take profit 1, and move the stop loss on break even (including the commision costs) on the remaining 50 shares. If we close over the last swing high, that is 33.50$, I will move my stop loss at the last swing low on the hourly chart. If we reach 35$, I'm going to close the entire position.
Technically, we have a class B bullish divergence (the third one) both on the MACD lines and the histogram. Bullish engulfing with strong volume. Also, the support line at 32$ is a very strong weekly support.
Comments
vlad.adrian
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Second take profit reached on 21.03.2014
afshin
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Thumbs up!
vlad.adrian
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Thank you!
Mirandole
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Nice previsions :)
vlad.adrian
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Thank you, honestly I didn't expect this strong break, I expected a calmer rally
Mirandole
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Do you think that the price will still go up ?
vlad.adrian
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Honestly, I don't know, but getting long now would be suicide. Wait for a decent retracement, the move is allready overextended. If I will spot a pattern I will post a chart :D
Mirandole
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Thx man ! Look at my profil if you like some good charts. Just look at it and give me your opinion :)
vlad.adrian
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I can't really give you an opinion cause your charts are intraday, and I do not know intraday trading or charting. As far as I'm concercened, day trading and scalping are the hardest ways you can trade and should only be tried after you have a great experience and great results in trading on larger time frames. IMO, and I hope you won't take it as an insult, you should concentrate more on analysing larger time frames, because the signals are much reliable there than on intraday charts:D
Mirandole
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Yeah you're fuckin' right ! :) And there is no insult there, only advice and I welcome it :)