080207 - GYI - 15mins - Gain*Paper

Symbol: GYI
Type: Long
Result: Gained +2.54%

• This is my final trade of the day
• GYI gapped down today and it continued to went down forcefully!
• All day I was dreaming/wishing that I made an entry as prices broke the Opening Range Low
• But I checked and checked, and I really couldn't spot any entry signals (I later posted a question to OONR7 for his opinion, and I will copy his response below)
• Since I couldn't ride the wave down, I thought to myself if I can spot any reversal signal, I am going to challenge myself for a retracement ride back up for a few quick dollars
• At 12:45, GYI painted a almost-Hammer shaped bar off a downward slope, signaling a base is being hammered
• I waited patiently for a reversal confirmation, which I received in the following bar
• I entered Long once prices exceeded the high of the 'confirmation' bar, with the Protective Stop set the to the low of the 'confirmation' bar
• My initial target was the 61.8% Fib Level, with a hope that it will ran all the way back up to meet the 34eMA
• I exited half my position at during the 14:30 bar when the prices reached my target
• I exited the remaining half - only because I had to run to a meeting!
• As you can see, it turned out to be an excellent 'exit.' :-)
• Although this trade did work out... I doubt that this will be my primary style of trading. Predicting the reversal is just as challenging as predicting the entry. Oh well there's still a whole lot for me to learn. And with the constant and unconditional help from these folks below, it just makes me want to work even harder to improve my trading!
  

OONR7's comment:

closet... think I would've immediately removed GYI from my watchlist because it didn't have a nice wide-range open. Also, didn't really see my kind of entry on the 5-min chart. The 10am bar looked the most interesting but it left a lower tail at the ORL. Just not a lot on the chart for me to get exicted about except for the end result.

And I just noticed that Jamie, from Wall St. Warrior, also left me this message from OONR7's blog:

GYI was on my watch list today. I wanted to short it after the NR inside bar (7th bar). However, the downsloping 5 ema was just too far away and I passed. Shoulda woulda coulda shorted it after it took out the midmorning swing low.

Thank you both!