amit1986
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This is one of the trades I took today, BRCM.
There was clearly strong resistance at the $30 decade number. As the stock broke out at 1:40pm EST, it did so with strong force, as evidenced by the Time and Sales. Usually, stocks that break strong areas of support/resistance come back to re-test those areas. I waited for this re-test, and it was clear previous resistance had now become support. Once the 1:45pm candle broke the prior candle's high and Time and Sales confirmed my entry, I got an entry at $30.10. To add further to this high-probability trade, the NASDAQ 100 E-mini futures had broken their previous days high with strong conviction.
Exit was at $30.35 (as can be seen on the chart on the red cross hairs) due to massive selling pressure on the Time and Sales, or one could have trailed the stop using the EMA(10), which would have provided an exit at $30.36.
If trading 500 shares, this would have yielded $125; if trading 1000 shares, this would have yielded $250. Not bad for about 20 minutes in the market.
Thanks for reading!![Smile :) :)](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
There was clearly strong resistance at the $30 decade number. As the stock broke out at 1:40pm EST, it did so with strong force, as evidenced by the Time and Sales. Usually, stocks that break strong areas of support/resistance come back to re-test those areas. I waited for this re-test, and it was clear previous resistance had now become support. Once the 1:45pm candle broke the prior candle's high and Time and Sales confirmed my entry, I got an entry at $30.10. To add further to this high-probability trade, the NASDAQ 100 E-mini futures had broken their previous days high with strong conviction.
Exit was at $30.35 (as can be seen on the chart on the red cross hairs) due to massive selling pressure on the Time and Sales, or one could have trailed the stop using the EMA(10), which would have provided an exit at $30.36.
If trading 500 shares, this would have yielded $125; if trading 1000 shares, this would have yielded $250. Not bad for about 20 minutes in the market.
Thanks for reading!