THE GREATEST LESSON I HAVE LEARNED

Solars seemed to be hot and CSIQ had a nice run up recently, so I figured this would be a good swing stock.  I bought on a intra-day bottoming pattern and just started baby-sitting it.  The next day it ran and made a new hourly high, I figured this was it, but it quickly was rejected at resistance.  This was also only a 2 tapper.  The next day it did the same thing, ran up and was immediately rejected within 5 mins.  I knew the breakout wasn’t coming that day.  

Feb 12th, the stock gapped up above the highs. I knew it was the day.  

Stock runs immediately out of the gate and then starts to base out, to form what we know as an ORB.  I then took a position as a day trade on the 4th candle at 28.07 stop under the 9ema.  Stock runs to highs, pulls back, and then its off to the races.  I sold all of my day trading shares at 28.93 from 28.07 and ½ of my swing trade at that price from 26.87.  

The point I’m making is this:  On days 1 and 2 the stock ran and was immediately rejected at resistance, there were too many sellers there.  On day 3 when the stock finally ran, it gapped and cleared all these sellers out of the way.  This is what made the intra-day ORB set up power and valid, it lined up on multiple time frames.  I knew there was a high probability it was going to work and it did.

PART 2

Szaman posted CSIQ on watch for a 20MA bounce for March 11th.  I checked out all of the time frames to see what it looked best on and the 15 min chart was the best look.  As expected stock runs out of the gate.  (Horizontal lines represent resistance from previous days)

Here is how I managed this trade.  

The point with this lesson, is stock lined up on multiple time frames, which gives us the edge.  Even if  a stock makes a pattern on a 5 minute chart, it doesn’t mean anything if it doesn’t line up properly on the bigger picture.  What I have learned more than anything is to do your homework at night and look for these opportunities.  There is no edge if a stock flags or ORBs right into resistance from other days.  Always soom out and look at the bigger picture.