A reader submitted the following four trades and asked me to analyze
NOC and
PHM for possible tips on how to pick good setups from mediocre setups in real time. He trades on the 10 minute
timeframe, so all the charts are displayed on the 10 as opposed to the usual 15 min.
The best setup, IMO is the BTU because we have
IBs, green on green, in the upper half of the
ORH with the
PDH holding as support, so I would rate this setup as A+.
The only thing I don't like about
ANR, is the entry occurs in the R-zone (retracement zone), which is often a consolidation area. I had
ANR and
ACI as early leaders (outliers) on my watch list, and I decided to go with
ACI (break of
ORH at the whole $ level). The entry point is a good distance away from the Fib. extension (R-zone) of the
PDL to the
ORH . ANR had bigger relative volume, but I thought ACI had a better base and higher chance of running given the distance from the R-zone.
The opening range for
NOC is very wide, so I would place my Fibs from the
ORL to the
ORH and extend from there. Price consolidates in the upper third of the OR and breaks out. The entry is good, but shortly after breaking, price stalls.
