10-27-06, Short ISRG, 30 min chart:


I went short at the green line ($100.09), as I saw it break below the opening range low and crack $100. There were lots of red flags on this one, but I chose a very aggressive stop anyway ($101.50) which made my reward:risk potential look really good (over 3). In retrospect, that stop was not justified since the entry was so far below the 5-ema, along with the wide range in the second bar. I jumped in on a quick down movement inside of the third bar, and ended up getting stopped out by the formation of the third bar hammer. I skipped down a timeframe and traded a 30-min setup on a 15-min chart and got nailed for -1R. I really need to stick to my timeframe instead of reacting to smaller order movements. If a trade doesn't work on your chosen timeframe and you have to jump down midway, then you've misread the risk:reward.

LVLT Short, 10-24-2006, 15 min chart:


This was a quick one. Green line is my entry at break of 2nd bar low ($5.46), target was 15 min opening range low ($5.33), with a stretch target being the fib extension below ($5.10) if it acted right. Stop (red line) above 2nd bar high at $5.57, also above the OR high and the 38% retrace. I liked the descending 5 ema too. The only red flag was that strong first candle after the gap down. Whadda ya know, it rallied and stopped me out. Anybody want a surefire system? Fade my trades. :P

9 Oct 2006: PWAV 30 Min. Chart...

Short on break of second candle low, filled at $6.51, initial stop $6.67. Covered at $6.43 near close.

10-05-06: TASR, Long 30 min Chart...


Wide range first bar, narrow range hammer closed above OR high. Entered break of 3rd bar high. Stopped out -1R at $8.52.

What happened?

GG Short, 30 Minute Chart:

Entry @ 21.76, below OR Low. Stalled out and retraced. Yellow line: Stop, Green line: 1R target.