PFD (Premier Foods) - SELL *Order Cancelled*

Hey Guys,

Break over and now back in the game!

Order set for PFD, based on ok'ish pin bar into major previous resistance and MACD divergence (see chart).

Entry on break of pin at 29.50, stop at 31.55 above pin, target is around 26 where price would meet ascending trend line.

For the record looking at this chart on IG charts, it looks crazy and nothing like it does on PRT, however have verified the chart against Yahoo charts which supports the PRT chart.

alright fx welcome back and nice spot
not sure if you're a religious man but the level also ties up nicely with 50% fib of the big selloff...



my only wariness would be the volume accompanying friday's gap up... but I find its easy to spot these things in other's trades, never in your own
certainly shaping up nicely this morning
good luck
Wig

Thanks for the advice Wig. I'm not sure how to gauge volume as it can be read in 2 ways:

1) Added volume shows the market is still interested and buying pressure is still there

2) Added volume could be seen as a final push to get the price to a pivot point before a reversal.

I generally like to see a fast run up to a turning point which generally comes with its fair share of volume as I see this as a final push on price. That said, when volume causes a gap, I'm not sure if this still holds true

Yesterday printed a smaller pin bar and I'm yet to be triggered in yet, order remains in place for now.

You may well have been right Wig, last daily candle looking very bullish, therefore I've canceled my order.

How long would you keep an order open once set and not triggered? As long as the chart pattern still looks ok or for a set period, i.e. do you like it to trigger on first day, do you allow to days for a trade to trigger?

On this occasion, I left the order set until Thursday as I thought price still looked bearish and then canceled after Fridays close when things looked very bullish.

nice analysis - still looking bearish like you say until yesterday's candle. Never know a strong retest of the level might still provide a short setup.

Hard to say how long to leave an order in place - I'm trying to avoid placing EOD orders if at all possible because it doesn't fit in with my 2/3 fill strat. guess it depends entirely on the setup - I suppose with pins specifically you're ideally looking for some sort of immediate reaction to confirm what the pin is hinting at

That said one setup I've started to notice more and more often is a kind of box range reversal where theres an initial rejection of a level (pin, reversal candles or something) then it sits around on the level consolidating for a good stretch before finally taking a bounce.

I'm trying to develop a sensible entry strategy to take advantage of this because it seems to be popping up all over the place now I've spotted it

so I guess what I'm saying is if there isn't an immediate reaction is doesn't neccesarily invalidate the setup
cheers
Wig