tradersams blog

wtf open

WTF:  Opened a position in Wotif.com today at $6.01 on open when my buy trigger fired and placed an order for me.

I had the trigger set to fire when the share went through the flat resistance line drawn across the earlier high, which coincides with the earlier highs about 2 years ago.  These earlier highs are not penetrated at this stage so this may be an early entry, but I spose I’ll know that when I close the trade.

The outlying chart formation is  roughly a broadening ascending wedge, still in formation as there has only been two traversals of the wedge, and 3 is preferred to actually qualify.  The ‘inner formation’ is a very rough ascending triangle – again not ideal as not enough bounces from trend lines – but the bit I do like about this is that the last dip before the end of the triangle has not made it to the trendline and bounced on out.  Often a good sign.

(The keen pattern follower will actually say my ascending triangle is not one at all, that its closer to an inverted head n shoulders, and I myself would say its a squiggle – but I’m calling it this, because as stated a few times earlier I am not too fussed about entries.  Its what I do after the entry that counts.)

The disappointing thing about the the days trade was that the volume was low for this share – maybe the only entries were a couple of us that had triggers fired.  Also a doji style formation was made, generally indicating indecision. For a breakout from an ascending triangle in general you want good breakout volume to have confirmation of the breakout.

So – in closing – remember to take those stops when they come, as I intend to do with this and all my trades.