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Steve's Trading Diary - December 2006


12/11 Bought DLB on the positive open but it came back and formed a Bearish Engulfing signal. However, it did it after a gap up. Be ready to buy this again on a positive open and seeing it move back up. Monday's signal should be the consolidation after the gap up. 12/12 It opened higher and traded back down but not to any great magnitude. Continue to hold. We don't want to see it close back below the low of the gap up day which was around $29.95. Continue to hold as long as it stays above that level. 12/13 It confirmed the gap up through the resistance level. It's still in an uptrend, continue to hold. We don't want to see it trade below Wednesday's open of $30.79. If it comes back through that level, you want to be out of the position. 12/14 It consolidated. It still seems to be in a nice strong uptrend though after the gap up. Continue to hold. We don't want to see it close below Wednesday's opening price of the big bullish candle. 12/15 It closed indecisively but has closed more than halfway down the previous large bullish candle. To stay in the uptrending channel, it needs to open higher and trade higher on Monday to continue to hold. A close below the low of the previous large bullish candle would warrant closing the position. 12/18 It's still in a slow uptrend after the gap up. It needs to stay in its current trading channel to the upside. We don't want to see it trade or close below Monday's low of $31.16. If it does, close out the position. 12/19 Although it pulled back a little bit on Tuesday, it did so with indecisive trading, forming a Doji. Still anticipate that it's in an uptrending channel. 12/20 It's now getting to the point where it might be running out of steam. If it trades lower on Thursday, close out the position. It needs to see a Doji-type day and hold at its current level to continue to hold this as a long position. 12/21 It held up. It's still doing an indecisive pullback after the gap up. Look for it to trade higher. We definitely don't want to see it close below the recent lows, which would coincide with the 20 day moving average. 12/22 It consolidated and isn't doing anything really positive. It's now starting back up. Continue to hold this one. We're still waiting for the next move up. We don't want to see it close back below the $30.40 area. That would tell us that the sellers had taken control. 12/29 It consolidated on Friday. It needs to show a positive trading day. Otherwise, if it trades lower, it's probably going to come back down and test the $30 area which means it's not a very strong chart at that point. 1/3 It formed a big Doji where it came down and touched the 20 day moving average. The stochastics are absolutely flat. This one needs to open higher and start trading higher on Thursday to continue to hold, which would also probably be a function of how the markets open in general. 1/4 It came back, touched the 20 day moving average again, and came back up. We would still like to see this pop to the upside one more time. 1/5 It's forming tails that are supporting on the 20 day moving average. We're still looking for a nice strong move to the upside out of the consolidation area. We don't want to see it close below the recent lows over the next few days. 1/8 It formed another strong Hammer-type signal right on the 20 day moving average. We need a positive open on Tuesday to show that it's going much higher. If it starts trading lower on Tuesday, close out the position. 1/9 This has been reiterated as a buy on a positive open on Wednesday. If you own it, continue to hold. 1/10 This could have been bought again on the strength on Wednesday. It has now broken out through the most recent high level. This usually indicates a very strong move coming up off the 20 day moving average. There is a lot of juice left in the stochastics. Look for another 2 to 3 points or more to the upside. We don't want to see it close anywhere b

 

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