Wednesday, February 21, 2007

YTBL-Another 10/60 Chart

On Muddy's Dayranger List. Shew, what a range. And beaten down big over the last day or two. Geez, the POS probably deserves it, but who cares. Trade it for today and move on.

Notice the volume spikes before the 10/60 cross on green candles. Then the 10/60 cross. Then another big green candle with volume. ALSO, crossing the even dollar mark at $7, which as you know, Muddy loves.

If you weren't watching before the cross, it was a beautiful buy signal at $7 after the cross. Closed at $7.85.


Prospectus said...

What was the buy signal--just the $7.00 cross? Also, was the signal exactly at 7, or would you wait for a retrace? I my limited experience, things like to cross round numbers, and then jump back and forth a time or two...

Laura said...

Just happened that all the signals were there at the same time on this one.

1. Volume spikes
2. Then the 10/60 cross
3. Then for confirmation, another volume spike right AFTER it made the 10/60 cross of even $7
4. I would say buy point would be nice at $7.07-7.10 range, a percent or so over the even dollar mark.

Prospectus said...

Thanks! Where would you place the stop on this one?

Laura said...

LOL, not that I always trade em right (believe me, I don't) but the best is to trail em up with a mental stop like Muddy says.

Could have bot after the cross and the cross of $7. Trail it with a 3-4% stop. Probably stopped out in the $7.50-60 range, but still a nice 5-7% even if you didn't sell at HOD but trailed it.

Prospectus said...

I ask about the stop to determine a position size in the event it goes against me. I'm not so concerned about when to get out as it's going up. That's the fun kind of exit! But what if I buy the $7 cross, and it immediately falls back to $6.50? I always have a maximum dollar amount to risk on each trade, and the initial stop is important in determining how big my position can be (in shares).

I guess a better question is how large of a adverse movement from your entry point would cause you to bail, generally speaking, and with respect to this YTBL trade in particular?

Muddy said...

For myself in most cases I use a 3-4% mental stop,trailing and initial.

Because YTBL average dayrange(10) is 10.3%,which is pretty high for a $9 stock,IF I was pretty well up in my account of late,I'd actually half it's dayrange of 10% and use a 5% stop.