Thursday, August 5, 2010

Wedge Buster - ADM

Daily Chart

5 minute chart

(Double Click Picture for a Larger View)
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Stock:ADM
Entry Bar: 4
Time Frame: 5 minute

Entry Green Line: 29.47
Stop Red Line
: 29.28
Result
: .20 to .93
Setup Grade
: B
Notes
: Not the perfect wedge play but still near the 5 minute high...what i liked most was the daily chart....the 2nd time busting threw the 200SMA. Two days ago it took a shot and failed. Once I saw the break threw again and the huge volume I was looking for a setup. My thought process was that many shorts keep there stops at the 200SMA. and the push threw will cause even more short covering. This in turn got me to be a little but more risky with the setup and it paid off. Even if it didn't....that is why we have a stop.

* 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.

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