Gap and Go Short - PBR

2 minute chart...stop placement

5 minute chart entry

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Stock:PBR

Entry Bar:2 Five minute chart
Entry Green Line: 30.84 SHORT
Stop Red Line: 31.12
Result: .05 to .25
Setup Grade: B
Notes: Due to wide range looking for an alternate stop placement using 2 minute chart. This presents more risk. Scale as you go, stop to entry where you would have been stopped out. Didn't run all day like the rest of the market. Small gainer.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap and Go - SPWRB

5 minute chart

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Stock: SPWRB 5 minute chart

Entry Bar: 2
Entry Green Line:23.03
Stop Red Line: 22.51
Result: .48 to 1.13
Setup Grade: B+
Notes:Scale out and get the stop to even, would just miss a huge winner. It happens and stick to your rules and stops.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

30 Minute Outside Range Breakout - DEO

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Stock: DEO 30 minute chart

Entry Bar: 6
Entry Green Line: 45.16
Stop Red Line: 44.98
Result: .15 to end of day
Setup Grade: B
Notes: nice hammer at the break line, scale as you go

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Why you use a stop

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Stock:ES emini

Entry Bar: open
Entry Green Line:783 short
Stop Red Line: 790
Result: stopped out
Notes: Great example of using a stop. I took a small position to fade the gap this AM, decent risk reward even though I dont like fading gaps on Mondays. As you can see I placed a stop, I didn't "assume" the gap would fill at some point. You take your loss and move onto the next day or play. Not placing a stop and you would have been crushed today as the market did not stop moving up. Taking losses is part of the game. Its a marathon not a sprint.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap Fade Today - Master the Gap.com

YM and EX e-mini made for some nice gap fade setups today. I use Master the gap to help me gauge if I am going to gap fade and index.

Some of the statistics you receive are the percentage a gap will fill in a certain zone and its profit factor. For example today the YM (dow e-mini index) had a 83% chance to fill its gap with a 2.12 profit fact for the zone it opened up in today. (this is taken over a ten year period)

Again I highly recommend Master the Gap and always use a stop.

Wedge Learning Setup

5 minute chart "setup"--not an ideal wedge play (see notes)

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Stock:GIS 5 minute chart

Entry Bar: 4
Entry Green Line: bottom of bar 3
Stop Red Line: top of bar 3
Notes:Unlike the previous day when I posted a wedge setup...this is not quality. The 3rd bar is over extended and not inside the previous bar. Depending on where you put your stop you may have had a winner as it broke down later on, but in most cases not worth the risk and stopped out.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Wedge Buster - RMD

15 Minute Chart Setup

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Stock:RMD 15 minute chart

Entry Bar:4
Entry Green Line:33.76 (short)
Stop Red Line: 34.18
Result: .73 to 1.25
Setup Grade: B+
Notes: Nice short setup on a strong day and I missed this trade, scale as you go

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

30 Minute Outside Range Breakout - PBI

30 Minute Chart

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Stock:PBI 30 minute chart

Entry Bar: 7
Entry Green Line: 20.76
Stop Red Line: 20.64
Result: .17 to .67
Setup Grade: B+
Notes:

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap Fade....Great movie scene

The ES and YM made nice gap fade plays today. Here is an awesome movie clip from one of my favorites, RUDY. The clip relates to how you strive for one goal but in turn better yourself in many other ways. Day trading is not a sprint its a marathon. The longer you can survive the better you will get.

Gap and Go - GLD

5 Minute chart

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Stock:GLD

Entry Bar:2
Entry Green Line:90.72
Stop Red Line: 90.45 (using 2 minute bar as a stop, .for less risk 90.13)
Result: .29 to
Setup Grade: B
Notes: Gold running strong at the open, scale out as you go

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Gap and 123 Pullback - BBL

5 Minute Chart

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Stock:BBL

Entry Bar: 2
Entry Green Line: 35.83
Stop Red Line: 35.54
Result: .29 to 1.43
Setup Grade: B-
Notes:Not exactly a 123 setup but nice hammer forms....room to run on the daily chart...and the market is very strong at the open...scale as you go...could have held some all day as this stock ran.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Emini Fade - No Trade

Going to start showing trades that didn't work out or didn't setup to where a trade should be taken. Hopefully this will give a better idea on why its important to stay picky in your trades. Even if your wrong stick with that stop.

15 Minute chart

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Stock:EMini ES

Entry Bar:704 level area
Entry Green Line: 704
Stop Red Line: 707
Result: No trade
Notes: This possible short setup had several resistance areas in the 704 area: 600EMA (5 minute chart) , pivot R2, yesterday fib extension 1.27... But even with the markets racing to these levels, a little "extended"....the TICK and TRIN said stay away, this is mentioned in my BP. They showed tremoundous buying pressure so I passed unlike yesterday.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Emini - ES Fade

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Stock:ES emini
Entry Green Line:688 Short..5th bar
Stop Red Line: 701
Result: scale out at plus 2, scale out a 684 pivot, remaining stopped out at entry (goal would have been 670)
Setup Grade: B+
Notes: All kinds of confluence: 200EMA, yesterday & last week close, yesterday open, monthly SA, plus gap fill..was at a viewing this AM so was not able to take this trade, but would have.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Emini - ES 123 pullback

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Stock:EMINI ES

Entry Bar: 13
Entry Green Line: 701.75
Stop Red Line: 699
Result: 10 points
Setup Grade: A-
Notes: Several layers of support where this hammer set up nicely. Targeted the 200 EMA. I only fade this when there are multiple support levels

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

E-Mini Opening Gap Fade - NQ

5 Minute Chart NQ

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Stock:NQ Emini

Entry Bar: 1
Entry Green Line:1090.50 Short
Stop Red Line: 1101.50
Result: 12 points and out gap fill
Notes: Master the Gap gives probabilities for gaps closing every day. I use these probabilities and other indicators to determine if I will fade a gap. Weak market and gave way to a nice gap fill.

* The setup grade is based on rules outlined in my business plan & not for the end result. Feel free to post any trades you made today that you would like commented on.

Video - Did You Know

No time to post today - Interesting Video