This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I took a live trade with my PnF for Dummies idea.
CREE showed up on the NASDAQ’s Unusual Volume list. It pulled back to the 45 degree trendline. After breaking the trendline, it turned back up. That was a possible entry, but I missed it.
After another upward surge it consolidated for a bit. I took a long entry near the bottom of the base. I set my stop below that range (with PnF charts you must allow for where the next ‘O’ would form) for a total risk of 13 cents. Note the highlighted yellow line. If you look hard enough, you can see a triangle that formed. That would be the first area of concern. Although it broke through, I’m unable to monitor the market for the rest of today. I’m closing it for a 44 cent gain. That’s a little over 3R.
I would say this is a Richard type of play, but 13 cents risk is way toooo much! :-)
Edit: This is the chart for the remainder of the session. Holding until the close in true dummy fashion would have resulted in a gain of 10R. Its something to think about. This chart shows the after hours action, so selling at 4 pm would have yielded an even greater gain.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
