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Steve's Trading Diary - August 2008


8/29 Bought BPFH on the positive trading on Friday. It's still in the process of forming a nice J-Hook type pattern. Use a close below the $8.55 level at the halfway point of Thursday's large bullish candle and the T-line as your stop. 9/2 It held up well on Tuesday. Continue to hold. Use a close below $8.65 at the T-line on Wednesday as your stop. 9/3 It consolidated nicely on Wednesday and came back up. It can still be bought if it breaks out through the recent highs, resulting in a nice J-Hook pattern. 9/4 It pulled back on Thursday and closed right on the T-line. It needs to trade higher on Friday to continue to hold. 9/5 It held up right on the T-line. Continue to hold. It needs to open positive. If it closes below the T-line at around Friday's open of $8.61, close out the position. That would tell us the Bears are still in control. 9/8 It gapped up and then came back down a little bit. We're looking for strength in this one on Tuesday. Use a close below the T-line at around the $9.00 level as your stop. As long as it stays above that level, continue to hold. 9/9 It came back a little bit but still held up reasonably well. Continue to hold as long as it doesn't close below the T-line. 9/10 It consolidated but closed up above the T-line. This can be bought aggressively if it opens higher on Thursday. 9/11 It opened lower, bounced off the 20 day moving average, and closed above the T-line. It can be bought on a positive open on Friday. 9/12 It held up above the T-line. It's still in a slow uptrend. Continue to hold as long as it doesn't close below the T-line. 9/17 It has held up well. It can be bought on strength on Thursday. 9/19 It's still holding up. It did some consolidation. We don't want to see it close back below Friday's low near the $10.40 level. You could have taken some off the table as it traded up near the first target at the 200 day moving average. Continue to hold as long as it closes above the T-line. 9/22 If it closes below the T-line, close out the position. 9/23 It closed just above the T-line. If it does any trading below the T-line on Wednesday, close out the position and wait for the next buy signal. 9/24 It closed at $10.58 and is forming a little Hammer type signal. It can be bought if it comes up through $11 on Thursday. Otherwise, if it closes below the T-line on Thursday, close out the position. 9/25 It closed below the T-line. If it opens weaker on Friday, close out the position. It needs to open higher and start trading up to continue to hold. 9/26 It was closed out as it closed below the T-line. Be ready to buy this back on Monday if it closes back up above the T-line after the Hammer signal of Friday.

8/28 Bought IDCC on the positive open. It pulled back a little bit but didn't change the fact that it's breaking out from the T-line. We definitely want to see it open higher and trade higher on Friday. We don't want to see it close more than halfway down Wednesday's candle at around the $26.40 area. If it did that, it would be a failure and we would want to be right back out of it. 8/29 It consolidated but didn't do anything dramatic. It needs to trade higher on Tuesday to show us the breakout is still in progress. 9/2 It traded up on Tuesday. Continue to hold. It should still be an uptrend. 9/3 It's still in a nice steady uptrend. If it can break out from here, it should have another 4 or 5 points in it. 9/4 It closed just below the T-line on Thursday. It didn't form a sell signal but it's getting toppy. If it closes below the T-line on Friday, close out the position. 9/5 It was closed out on Friday as it opened and started trading lower. It formed a Hammer type signal but unless it has a severely positive day on Monday, there is nothing to entice us to buy back in.

8/27 Bought SAPE on the positive trading on Wednesday. Notice that J-Hook type pattern bouncing off the 50 day moving average. This one should have another couple of points left in it. 8/28 It continued higher. Continue to hold. It should still have some upside potential. 8/29 It consolidated a little bit but isn't showing a reversal yet. Continue to hold as long as it closes above the $9.10 level on Tuesday. 9/2 It continued higher on Tuesday. Continue to hold. Use a close below $9.30 at the T-line as your stop. 9/3 It's moving up nicely. It did a little consolidation on Wednesday but the upward direction didn't change. Continue to hold. 9/4 It closed below the T-line. If it opens weaker on Friday, close out the position. It needs to open higher and immediately start trading higher to keep holding it. 9/5 It was closed out as it gapped down below the T-line on Friday.

8/26 Bought SQNM on the positive open on Tuesday. It traded up and then came back down and traded in the lower end of the trading range. Continue to hold but we definitely want to see it close positive on Wednesday. A lower close, especially below the halfway point of Monday's bullish candle and the T-line at the $21.50 area, would have us right back out of this position. 8/27 It stayed above the T-line and closed just above our $21.50 stop at the $21.80 area. This definitely needs to open higher and start trading higher on Thursday. If it starts trading lower, especially below Wednesday's low of $21.55, close out the position immediately. 8/28 It did exactly what it needed to do. It bounced off the T-line and is heading up. This can still be bought on a positive open on Friday. 8/29 It didn't do anything significant on Friday. We're still looking for breakout to the upside to confirm the Rounded Bottom pattern. 9/2 It held up reasonably well and stayed above the T-line. If it closes below Tuesday's low of $22.15, close out the position. 9/3 It looks about ready to break out. Continue to hold. 9/4 Be ready to take some profits if it opens lower and starts trading below the T-line on Friday. The big Shooting Star signal on Thursday shows weakness. It needs to open flat and trade higher to continue to hold. 9/5 It closed above the T-line. Continue to hold. It's still in a nice, slow, steady uptrend. 9/8 It should have been closed out on Monday as it closed below the T-line. The more aggressive traders should have closed it right below the T-line. The fact that we had a strong market and the stock still sold off told us we should be out of this position.

8/29 Bought MF on the positive trading on Friday. It didn't do very much, but formed a Doji which is a good sign because if it opens higher on Tuesday it should have another good run. It's still forming a nice J-Hook type pattern. Continue to hold and use a close below $6.95 at the T-line as your stop. 9/2 It traded a little bit higher on Tuesday. Continue to hold. 9/3 It moved up a little bit. Continue to hold. It could break out from here and become a $10 to $12 stock. 9/4 It consolidated a little bit. It held up reasonably well but it's starting to top out. If it trades back below Thursday's low of $7.47 on Friday, close out the position and wait for the next buy signal. 9/5 It consolidated and might be getting a little bit toppy. If it doesn't trade positive on Monday, come out of it and move your money elsewhere. 9/8 It closed lower on Monday, right on the T-line. It needs to open higher and start trading higher on Tuesday to continue to hold. Close out the position if it opens lower and starts trading down. 9/9 It was closed out as it opened lower and traded lower most of the day.

8/28 Bought WNR on the positive trading. It closed right at the 50 day moving average. It would be nice to see it open higher on Friday and break through the 50 day moving average. It should do that without much of a problem since the stochastics are starting to head up. 8/29 It consolidated a little bit after it came up and touched the 50 day moving average but didn't do anything to tell us a reversal had happened. Continue to hold. Use a close below $8.70 at the T-line as your stop. A close below that level would tell us it was failing at the 50 day moving average. 9/2 It held up well on Tuesday. It consolidated a little bit but stayed above the T-line and the 50 day moving average. 9/3 It had a very nice move to the upside on Wednesday. Continue to hold. Anticipate a test of the 200 day moving average. 9/4 It held up reasonably well but it needs to be closed out if it starts trading below Thursday's low of $10.43 on Friday. If it trades below that level, it tells us the Bears are back in control. 9/5 It continued to hold up very well after the breakout. We're still anticipating a move up to the 200 day moving average. 9/8 It's still moving up nicely out of a big Fry Pan Bottom pattern. We're still anticipating a run up to the 200 day moving average. 9/9 It closed just above the T-line. It needs to open higher and trade higher on Wednesday to stay in the position. If it opens lower and starts trading lower, close out the position immediately. 9/10 It was closed out as it traded below the T-line on Wednesday.

8/25 AVID was not bought on Monday. It had the potential to break out but it opened lower and headed down. It would not have been bought.

8/1 Bought HSC on the positive trading on Friday but it was closed right back out as it closed back below the previous day's low. It told us the Bulls were not coming into this one yet. However, be ready to buy this on the next buy signal. It's still coming off a Kicker signal.

8/4 SNCR was not bought on Monday. It opened lower. It needed to open higher and start trading higher to confirm the J-Hook pattern. However, it did stay above the T-line so still use the $12.50 area to start buying. Then anticipate that it will move up to the $15 area.

8/4 GU was not bought. It opened lower and stayed below the 50 day moving average all day. You can probably forget about this one unless it forms a new buy signal and closes above the 50 day moving average.

8/6 AIG was not bought on Wednesday because it needed to open higher and continue the uptrend with the J_Hook type pattern. However, it did consolidate and came back up to the 50 day moving average. Don't be afraid to buy this one if it opens and starts trading above the close of the previous day at the $30 area.


 

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