20070410 - INCY - 15mins - Loss

Symbol: INCY
Type: Long
Entry: At almost the top of the 10th bar
Exit: Stopped out close to the bottom of the 13th bar
Result: Lost -1.42%

I really need to learn how not to jump into trade too quickly! I thought I caught the consolidation from the 4th through the 8th bar, with a few Inside Bars and Narrowest Range Bar. I told myself that if the price moves above the Opening High, I will go Long. I was distracted for a moment, and when I come back to this setup, the 9th bar was already completed, and at that moment, the 10th bar seemed to me that it was going strong. Therefore, I entered Long, and expecting to exit at the 113% Fib Ext.

Not only did the price not go up, it re-tested the 5eMA support, almost as soon as I have entered the trade. The next bar showed a slightly positive bar, and I thought the situation would have changed for the better when the 12th bar closed at its high.

Man! Was I wrong again?! My Protective Stop was set to slightly below the, now flat, 5eMA. And it was executed during the 13th bar meltdown.

What did I do wrong? I wouldn't know unless I check with the Pros... which I will! But before I hear from them (assuming that they will respond), my criticisms for myself is:
1) When the 7th bar broke the Opening Range high, there wasn't much Volume. I don't know if it matters!
2) I should have sticked with my original game plan by looking for bars that have cleared the Opening High. In this case, only the 4th bar had cleared the Opening High! I was observing the situation when the 4th bar completed, and I was not convinced that it was a good entry because the rising 5eMA was too far below.

I will post this setup to the Pros and see what they have to say. If you have input that you would like to share, please feel free to do so. I would like to hear from you.


Review by ADD Trader posted here.
Review by Wall St. Warrior posted here.