20070410 - INCY - 15mins - Reviewed by ADD

As mentioned, I was going to post a question to the Pro, to find out why they think the setup on INCY failed today. This comment was left by ADD Trader, in response to the question that I posted on Trader-X's site.

Hi Closet,

For what it is worth.....

The high of 9th bar did close strong above the OR high, but below the high of the day and you had a big tail on the 3rd bar to be wary of. Maybe of more importance though is that the high of the 9th bar was the exact high (7.70) that INCY made on a daily chart on 2/2/07. I know X doesn't look at larger time frames, but they can come into play, ESPECIALLY on large gaps right up to resistance.

Also, sometimes a good set up just doesn't work out. That pullback on the 10th bar (leaving a long upper shadow) should have been a sign to possibly close the position. And if not, then definitely on the pullback from the 13th bar high. Three failed attempts to break out tell you (in my opinion) that the chances of it happening are slim.

Not to say I would have sold....just look at my short in STX...I had three chances to cover and didn't. Doh......!

ADD

A million thanks to ADD Trader for spending the time to provide his input. After digesting his suggestions, I made some notes on the chart, to highlight what ADD Trader commented. He pointed out quite a few things (yup, a few! Scary!) that I missed when I was in action. It is definitely something that I need to learn.