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Inside Bar

USDCHF Inside week and a potential XYAB patternUSDCHF has an inside week last week. I believe every breakout direction of inside week is important, while not every one worth trading. Most of the time weekly chart are for mid-term to long-term analysis, not really very suitable for day trading and leverage trading with regard to time and overnight cost. However, the bigger picture matters of course, so I still turn to weekly chart on every Monday to decide the long/short preference this week. Here in this chart, there are 3 potential trading ideas: 1. inside week breakout 2. inside week breakdown 3. XYAB Pattern I won't trade all of the above directly, but if it completes the trading set-up, it may pretty much influence my long/short preference. What's more, the high and the low of the inside week are both figures, which may kind of enhance the power of the breakout although Forex doesn't regard fig levels as much as stocks. Bottom line, I don't predict it will go which one of the 3 trades, actually I never do. All I want to do is to "recognize a trend and participate it". Prediction has nothing to do with my trading philosophy.
by Trader_Joe_Lee
GS inside day after earningsGS has a inside day after earnings, and it's one of my favorite trade! The stock futures had a little bit plunge this afternoon as the news about Spain, while in terms of inside day, we won't be afraid of news. What we focus on more is the direction it breaks. If it's able to break to the upside, it means it shows great relative strength and it's still a nice long; If it breaks to the downside, then it will pretty much be a short-term trade as I am not bearish with the stocks yet. Also, there is a potential bat pattern entry I drew this kind of pattern several times as it can give different strategy depending on different kinds of scenario, so I have a clear mindset to deal with the unpredictable market movement.
NYSE:GSLong
by Trader_Joe_Lee
AMD, Another 0.618,2618, and inside day combination One month ago I posted this trade on TradingView and it became one of the most powerful education material for 2618 trade; This time the 2618 looks even more significant, and it could be another chance to long. Noted that whenever using inside bar as confirmation entry, a 1:1 1st kick of the inside bar itself is a MUST. So there are actually 2 trades possible: 1. inside bar breakout 2. 2618 entry right here. A higher winning percentage needs a larger room for the stock to run and means less position and longer duration; A great risk-reward ratio with smaller risk allows larger positions and faster result, while it could be stopped out more often. Both are meaningful but they are at the 2 sides of a scale, so find a good equilibrium and a most suitable way for yourself is more important.
NASDAQ:AMDLong
by Trader_Joe_Lee
MU inside day long opportunityThe whole stock market is in the rally mode again, inside bar is one of the most effective tool to take part in such market. MU, as a cyclical stock most of the time, also made an all time high on Wednesday. The other unbelievable low P/E stock GM also starts a rally, and I think if there are still continuation for this rally, a simple P/E correction to 10-12 times can create a huge rally for these names. Of course, stocks won't suffer low P/E for no reasons; there are always skepticism for both MU and GM's business. I'm not really that optimistic to say that they are going to make a REAL turnaround here, but a limited risk set-up to long to take part in the potential continuation is still a solid idea.
NASDAQ:MULong
by Trader_Joe_Lee
BA inside day long opportunity.Yes, you guess it right, to long in such a high price looks silly again, but it's really one of the most effective way to join an great uptrend without any significant pull back. As BA's business keeps on growing, many investment bank start to upgrade it with target price higher than 300.00. I know clearly how unreliable the target prices can be, but to be bullish and try to participate in a trend is always my trading philosophy. This is one of the case that I don't really want to use the inside day low as my out, since 1. 8 ema hasn't caught up the inside day low ; 2. I don't really want to risk only 1% in a trade, should give it a little more room to run. Therefore, the previous pivot @ 254.07 is good enough for me. Let's see how it goes!
NYSE:BALong
by Trader_Joe_Lee
1
PG trading strategyPG on the hotspot and it gave an inside day yesterday, in terms of investment, we should actually avoid these hotspots and news names; while in terms of trading , we look for fluctuation to trade! Short-term plan for today is the inside day, if it's able to break 91.80 today, it might be a good news pull back to long this consumer product giant; If it breaks the downside, it could be the continuation trade for the 90.00 breakdown. That's why I recognize it as a both sided trade. 1:1 1st kick and strict risk-reward stop are MUST of course! In larger time frame, the bullish bat pattern can be a better long if it's able to give reversal sign there. Let's see how it goes!
NYSE:PG
by Trader_Joe_Lee
GBPUSD, inside hr after new high longThis trade looks so silly that suggests chasing GBPUSD after a 250pips rally. While in terms of inside bar after new high trade, the only indicator to define whether it's too extended to long is 8EMA, if the 8EMA is able to catch up the inside bar low, it's still not too crazy to trade! Again, I only want to long in such a uptrend, so I won't take the short if it breaks to the downside; if the breaks to the downside first, than this trade doesn't exist anymore. *For educational use only
Long
by Trader_Joe_Lee
2
TEVA, A potential both-sided inside day.It's really tough for TEVA investors since 2016, everything seems so bad for this generic drugs giant. They finally got a new CEO and got good news from FDA, which enabled the stock price to bounce 20% in 2 days. Here we got this inside day after such a big movement, so the direction it broke becomes so important to the following sentiment on this name. Trading this inside day directly is also an OK idea, but I would more like to find intraday trade in 5/15/30 minute chart as I don't really want to swing this name unless I have a very successful day-trade. *For educational use only
NYSE:TEVA
by Trader_Joe_Lee
NEM Daily butterfly pattern and 40 fig combination.Gold price has rallied from 1200 to 1320 within 2 months, while at the same time there were a little different story in the gold miners. NEM showed the best relative strength to rally about 25% in the same time period ; GG was the lagger that only rose for less than 10%. I also expect there might be a little bit catch-up play among the gold miners. The North Korea news happened just now may lead to a gap for gold price on Monday, and probably so as these gold miners. I WON'T turn bearish until I see any clear reversal sign, but if there is one, it might still be a good trading opportunity. 43 is the best SL as it's the gap, fig, and 1.618 extension, while if the reversal sign is strong enough, I don't mind to use it as my out to make it easier getting my 1:1 1st kick.
NYSE:NEMShort
by Trader_Joe_Lee
WB, Inside day after new high and fig breakout combination.WB is definitely one of the most explosive stock this 2 years, rallied from 9.00 to more than 100.00 , and there are still people like me willing to chase it lol. For stocks like WB, fundamental analysis is not really very helpful as the stock price contains too many expectation and the P/E ratio is just crazy. While it doesn't mean chasing the price above 100.00 is foolish at all, as people may have the same discussion when it reached 50.00,60.00,70.00,80.00 .......... , and all the people who were brave enough to long then were still able to make lots of money. So everything is about trend and trading set-up, I always like to long the inside day after new high as no one knows how far can stocks go. WB has an inside day after new high with a high @ 107.00, it created a little more power when the inside day high is right at the figure. I'm willing to take the trade as it provides great risk-reward ratio with little risk. *For educational use only
NASDAQ:WBLong
by Trader_Joe_Lee
1
USDJPY Daily bearish bat patternUSDJPY has a daily bearish bat pattern (not really a perfect one in terms of the parameter and the X point) It's a daily chart set-up but it's only 20-30 pips risk, and it's still too early to be optimistic on US dollar. Therefore, a bearish set-up to short USDJPY with reasonable risk provides great risk-reward ratio; while I still need a confirmaiton entry to enter the trade: 1. double top / 2618 2. inside bar breakdown 3. shooting star One of the above sign formed in time frame larger than 30 min chart may be the cue to enter the trade. The SL will be slightly higher than 109.40.
Short
by Trader_Joe_Lee
2
USDCAD, CLASSIC inside bar tradeIf I'm asked about what is the most interesting part for inside bar trade, my answer is "trailing". 1st kick is only for risk management purpose to make me able to deposit the risk to other trades, the outstanding risk-reward ratio is about the other half of the positions. The other half is very important so I need it to run as much as possible, so I NEVER put sell limit order for the other half of the positions, I would more like to change my out only. With trailing in mind, I never have to worried about whether to sell or not, all I need to do is to wait for pivot to put my out (LH/HL). This inside bar trade is a multi-reason combination itself 1. 1st inside bar after the rate hike (both direction trade) 2. inside bar after new low (short) 3. the more inside bars in a row the better It literally was a MUST trade for all the inside bar traders.
Education
by Trader_Joe_Lee
AUDUSD inside day trading plan Last week I posted this inside week long for AUDUSD, although it almost stopped me out, it held and it was able to make new high to get my risk-reward stop. Today there is an inside day for AUDUSD, I DON'T recommend trading the long this time as it's not realistic to expect the 1:1 kick at a new high level, and there is a bearish bat ahead. Putting the out of the long position to the inside day low is a good idea, and maybe a good flip to take part in a potential double top.
by Trader_Joe_Lee
2
DDD, daily bat pattern and a inside day combinationActually it could be a weekly bat pattern with weekly hammer combination, but I like this inside day a little more. 3D Systems got slumped after its poor 2Q result, and it consolidated for almost a month. It's a relatively higher risk trade as I am not really that bullish on its fundamentals,either; but as a harmonic patterns and price action believer, it's a nice trade set-up. If it breaks down 12.63 before it breaks out 13.00 fig level, then this trade doesn't exist anymore.
NYSE:DDDLong
by Trader_Joe_Lee
JNJ, a 75 cents risk daily bullish Bat Pattern. (MCD FTF trade)Both of JNJ and MCD are stocks that I want to have in my retirement portfolio, they are typical stocks that worth the easiest buy and hold strategy. While it doesn't mean they are not tradable at all,since if I don't really want to risk 10-20% for a mid-term investment, I may turn to some tiny risk short-term trading opportunities. Here JNJ got a daily bat pattern with a suggest entry near 130.30. Also, 130 fig support itself is usually strong enough to rely on, so I would like to buy off the support with this 2 strategies' combination. JNJ is a stock that worth more than 10% risk, if I can trade it with only 75 cents risk, I can trade much much more shares if I'm willing to risk the same amount of money. (for sure I won't risk as much though) Of course less rooms mean lower winning percentage, and being stopped out in such a name with such tiny risk sounds silly. While my purpose for day-trading is always to create longer term swing positions, and I don't mind if the trade failed as it's the risk I'm willing to lose, and it will be very good positions if the trade succeeds. ===================== On the other hand, the MCD 160 breakout is another trade that I'm very willing to get involved. It has tried several times and consolidate a lot in front of it , which should accumulate much power for the breakout. 156.95 might be a good out for the swing trade with 162.95 1st kick. 160 level could be a intraday FTF trade (I believe no one knows FTF trade, since I invented it lol) FTF trade: find a 5 minute or 15 minute out for the day traders who trade the breakout , put a buy limit 1:1 to their risk, put the out to the previous pivot low in the given time frame. EX: if the potential out is 159.80, the 160 breakout's risk are 20 cents, so FTF trade will put a buy limit @ 159.60. *the potential out is the out day traders may use if they are involved with the breakout, so think about where they will put the out to find the potential out. Logic: If the 1st try of the breakout fails, the traders who traded the breakout will be stopped out and it created extra, unnecessarily selling pressure that causes slippage. The people who can benefit from the slippage are the people who already put their buy limit there. It's a trade that I invented after suffering slippage a lot and I tried several times back then I day-traded a lot.
NYSE:JNJLong
by Trader_Joe_Lee
ATVI, Great relative strength inside day !I'm a big fan of HearthStone and Warcraft III was my favorite game back to my senior high. That's not really important in terms of investment and trading, while it does create some preference bias for me lol. Yesterday the market was slumped almost 1%, stocks that are able to have an inside day showed great relative strength, as most stocks may break the previous low in such a day. For ATVI, it finished price correction to 8EMA and gives an inside day, I am willing to long the inside day breakout in such an uptrend.
NASDAQ:ATVILong
by Trader_Joe_Lee
7