In addition to the CHAP trade, I made two uninteresting scalps on BSX and PDE. The BSX made 1.4R and the PDE one suffered from a bad fill (f’ing uptick rule). So, I bailed on PDE for just a few cents profit, at my original 1R target! Bad fills suck when you are only trying to scalp a little move. Oh well, I made $50 off it so I can’t complain!

That’s three trades and three winners for the day, which is more than I usually trade. (It’d be like if JC had traded 300 times instead of 100). And, the markets are choppy today, with no real trend in the NYSE TRIN. I fear tomorrow will be just as bad, while the FED stuff still looms.

So, put a fork in me; I’m done. I hope all of you had a good day!

Here’s a box play on the 10-minute charts, with box width of 40 cents. These box plays are unstoppable!

The Setup

Chaparral Steel Company (Nasdaq: CHAP) was up on high volume, but got stuck in a range after making new highs on the daily chart. I was looking for a box play with a breakout on the upside. Instead, I got a box play with a breakout to the downside.

Entry Criteria and Trade

Here’s the chart of the trade:

1. I could have picked the previous green bar as the first part of the box play, but I don’t like to start at the top of a wide-range candle. That’s just me. So, I started on the local low about 50.35.
2. A local high is formed at 50.75.
3. The price didn’t quice make it down to 50.35 again, but since it was about 5 cents off on a 40 cent range, I let it go. Also, I was looking for an upside breakout, which would make a higher low good for me.
4. The 50.75 area is hit again. This completes the box. Once the price retraces 25% into the box, a trade will be taken on a breakout.
5. We have a nice orderly breakout to the downside. Initial stop is 50.75, and initial target is 49.95, for a 1:1 Ratio. I’d also exit after any serious push back up from extremely round number 50. In fact, it probably makes most sense to set the target at 50.

Target was hit a while later, in a tiny dip below 50 to 49.94. This was a very stress-free trade, as the price didn’t ever retrace back into the box area after the breakdown.

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