Redback Networks, 30-minute Chart
Questions:
1) Why would you be paying attention to this stock on Monday, September 8?
2) Is the trend up or down? Would you be looking to get long or short this stock?
3) Where would you get long/short this stock on Monday, September 8?
4) Where would you put the initial protective stop?
5) When would you stop trading for the day?
6) Where would you exit the position?
Answers:
1) Because it was unusually active, and very volatile.
... (RBAK was the #1 Abnormal Character)
2) Up. You'd be looking long.
3) Long at 0.59 on a buy stop above the 11:00 bar.
4) Tighter: 0.55. Looser: 0.55. (max. 6.77%)
5) Right after you enter the position or lunchtime, whichever comes first.
6) End of day. Could sell half, carry half, or just close it all at once.
UTStarcom, 30-minute Chart
Questions:
1) Why would you be paying attention to this stock on Monday, September 8?
2) Is the trend up or down? Would you be looking to get long or short this stock?
3) Where would you get long/short this stock on Monday, September 8?
4) Where would you put the initial protective stop?
5) When would you stop trading for the day?
6) Where would you exit the position?
Answers:
1) Because it was unusually active, and very volatile.
... (Old Unusual Suspect, New Abnormal Character to boot)
2) Down. You'd be looking short.
3) Short at 39.79 on a sell stop below the 12:00 bar.
4) Tighter: 40.01. Looser: 40.14. (max. 0.88%)
5) Right after you enter the position or lunchtime, whichever comes first.
6) End of day. Could cover half, carry half, or just close it all at once.
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