Thursday, December 11, 2008

DHR 10th Dec 2008 10:21ET...

Found this one (along with ABT which I didn't get into as I was busy with DHR) Held prior days highs on lower volume...also was running into 60 min downtrend channel resistance. Intraday, had the support of the declining vol and smaller breaks of prior highs. Picked off my entry at 51.56 as I saw the price wicking into the upper resistance line of the pattern.

When the momentum is so strong out of the pattern, I usually look to take off some as the momentum slows. Some kind of pullback normally follows before a second wave of action to continue in the direction the trade was intended. I missed this 51.25 ish slow down when I lost my internet connection. I eventually got out of some at .35, highlighted on the chart. Taking off the rest at 51.05 just before the whole number and into that equal move zone (depending on how you measure it- wick-to-wick measurement gives you the early 50.90's, which it flushed down to)

In retrospect, I saw the pullback after my missed partial exit was on the lowest vol of the session up to that also stopped at the support/resistance line with reversal candlesticks to boot. But my decision to take partials was based on my missing my exit in addition to the fact that I had to get ready for work!

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