Today I found two stocks that established nice Grade A patterns–Walter Energy, Inc. (ticker: WLT) and Deckers Outdoor Corporation (ticker: DECK). WLT had developed a nice 45 degree uptrend pattern in the early morning, and DECK, on the other hand, had developed a triangular uptrend pattern. If you don’t know what I mean by “Grade A” patterns, please visit my Stock Pattern Grading articles in Part A, Part B and Part C.
Here are the 5-minute charts for WLT and DECK:

These two stocks both have large daily trading volumes and a …

I often remember that my teacher once said: “Day Trading is a boring business, but it is profitable”. The more I get into day trading, the more I can understand his words. All you need to do in day trading is follow the routine: get up in the morning at 8am, turn on the computer to check the market news at 8:30am, fill out the watch list ,and then wait till the market opens at 9:30am. And then check the stocks to find potential trading patterns, see if they develop …

There were not many stocks worth trading in my watch list today. Only a couple in the early morning and a couple in late morning. The early morning stocks that showed good setups were LVS and ROK, and the late morning stocks were RIMM and WRS.
Lets take a look at Las Vegas Sand Co. first:

LVS opened slightly below yesterday’s low/close level. It tried in vain to close the gap, but quickly slipped down to the early morning low price which was $50.85. Usually this is too early for me to …

Today is my birthday! I woke up in the morning as usual, but saw two men standing beside me–my husband and my son. “Happy Birthday!”, they acclaimed. Wow, that was really sweet! I smiled, looking forward to a wonderful day ahead of me.
As usual, I opened up Briefing in my browser at 8:45am and started to look for news. Then I opened my eSignal account to load stocks. Today’s Monday, so it is a relatively quiet day in terms of economic news and number of companies which report their earnings. …

MHK is a great stock that I missed today. To be exact, I didn’t missed the stock, but I missed the right entry point. I actually entered the stock twice. The first time was at a fake breakout point, and the second time was at a less favorable point that I was not comfortable to stay for long. Take a look at the pattern first:

The first time I entered the trade, was right after the stock dip under $58 at $57.84. The stock first showed strong momentum to go down, …

Today, I encountered three beautiful early morning breakout patterns. They either opened flat or with a small gap up. The stocks were first stopped by yesterday’s high level, but quickly broke out of that level and shot up high. This has become my favorite pattern in the early morning session. It has a very high success rate and usually formed the setup early in the morning (often before 10am). Take a look below:
The first one is BID, which broke out completely on the 4th 5 minutes bar.

The ideal entry point …

POT showed an interesting pattern today. It opened high above yesterday’s high, then dipped down through the 10ema, then again through today’s early morning low, and then through yesterday’s high. It was temporarily stopped by yesterday’s high level, and struggle over an hour until it finally dipped down into intra-day range, showing a good sign of downside movement. The potential entry point is mid-day low at 146.32. The potential upside exit point is 10ema which is 146.51, and the downside exit point is yesterday’s low which is 143.64. A whopping …

Take a look at CTSH’s pattern today. The stock shows strong bearish in early morning, however was supported by bullish buyers. Yet the buyers eventually conceded to the bearish sellers and stock dipped below yesterday’s low. The ideal entry point should be right below today’s early morning low at $64.12. And as expected, CTSH showed nice bearish pattern going further.

There are two stocks with great patterns today. I did one and missed the other.

WYNN is the one that I entered, a little bit after it broke out its early morning high. The entry time is at 9:55am. I was a bit hesitant because at 10am, there is economic news. However, the momentum was great and the trend was very clear. So I entered. Also, as we can see on the chart, WYNN started the day right above yesterday’s high, and below the day before yesterday’s high. It was supported …

Another example for this pattern is POT on Oct 28, 2010. Check it here:

POT broke out yesterday’s low in early morning. But the next support point is the day before yesterday’s low, which was shown on yesterday’s chart on the left. Once again, after a small correction, it resumed the down trend and that is a strong signal that the stock is going down. Obviously, it did.