{"id":47783,"date":"2016-01-09T23:04:26","date_gmt":"2016-01-10T07:04:26","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=47783"},"modified":"2018-03-25T02:57:06","modified_gmt":"2018-03-25T09:57:06","slug":"nike-stock-chart-review","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/ask-al\/nike-stock-chart-review\/","title":{"rendered":"Ask Al: Nike stock chart review"},"content":{"rendered":"<h2>BPA trading room Q&amp;A: December 23, 2015<\/h2>\n<p class=\"content-box-green\">Can you talk about the Nike five-minute chart?<\/p>\n<p>Video duration: 7min 40sec<\/p>\n<div style='position:relative;height:0;padding-bottom:56.25%'><iframe class='sproutvideo-player' src='\/\/videos.sproutvideo.com\/embed\/7c9adfbb1319efccf4\/79ff2b5b64280561?playerTheme=dark&amp;playerColor=' style='position:absolute;width:100%;height:100%;left:0;top:0' frameborder='0' allowfullscreen><\/iframe><\/div>\n<p><\/p>\n<p class=\"caption\">You can also view this video on <a href=\"https:\/\/youtu.be\/0q32DHseBN4\" target=\"_blank\" rel=\"noopener\">Al&#8217;s YouTube Channel<\/a> if needed.<\/p>\n<h2>Video transcript\u2014Nike stock chart review<\/h2>\n<h3>Nike\u2014not an easy day&#8217;s trading<\/h3>\n<p><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/01\/nike-pro-turbospeed.jpg\" rel=\"attachment wp-att-47789\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-47789\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/01\/nike-pro-turbospeed.jpg\" alt=\"Nike Stock Chart Pro Turbospeed\" width=\"300\" height=\"300\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/01\/nike-pro-turbospeed.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/01\/nike-pro-turbospeed-150x150.jpg 150w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Yeah. Nike was an interesting chart today. So was <a href=\"http:\/\/www.fcx.com\/\" target=\"_blank\" rel=\"noopener\">Freeport-McMoRan<\/a>, it was way oversold and just gapped up and rallied all day&#8211;so that was an easy one to trade. <a href=\"http:\/\/www.nike.com\/us\/en_us\/\" target=\"_blank\" rel=\"noopener\">Nike<\/a> was the opposite; gapped up to a new all-time high and then sold off. So if you\u2019re watching Nike, you see a gap up strongly to a new all-time high and then how many bars do you need before you conclude that something\u2019s wrong? And something\u2019s obviously wrong with the first bar, and then when you see that second bar closing on its low like that, it\u2019s Always In Short. You got to be thinking that it\u2019s going to fall for at least a measured move based upon the height of those two bodies, so it\u2019s probably going to fall at least two more dollars, okay? Sell the close, sell the close, sell the close.<\/p>\n<h3>Trading range price action<\/h3>\n<p>Okay, doji&#8211;might get a trading range soon. Outside down, not good for the bulls. Looks like sell the close again. Doji might be starting to enter a trading range. I think it\u2019s probably still sell the close, stop above this bar, maybe above that bar, but looks like we\u2019re starting to get <a href=\"\/how-to-trade-manual\/trading-ranges\/\" target=\"_blank\">trading range<\/a> price action \u2013 a doji, then tails, and then another doji.<\/p>\n<p>Sell climax at 13, but it\u2019s also a breakout. More follow through, still sell the close. Now, we\u2019re getting consecutive sell climaxes, climax, climax, climax, climax, so it\u2019s probably going to start to go sideways soon. Decent looking bull bar, but it\u2019s also in a very tight bear channel. To me, I usually do not buy with a stop above that bar. It could easily test the moving average. If I\u2019m looking to buy, I\u2019m going to wait to see if you start to reverse up strongly and then buy. Or start to look to buy below bars. But to buy with a stop above the bar in a channel that\u2019s falling so steeply, I think that\u2019s not a very good buy.<\/p>\n<h3>Limit orders<\/h3>\n<p>Okay, now we have a second entry buy here, so it\u2019s a better buy. Now, I\u2019m thinking in terms of limit orders, okay? Or stop &#8212; or wide stops, right? To me, I think you can buy above 21, but I would use a really wide stop. We have a potential measuring gap, 12 low, 18\/19 high. Is it a measuring gap from the high of the day? Are we going to get our measured move down from there? I doubt it, but we might get a measured move down from here.<\/p>\n<p>All right. So if you\u2019re buying above this, your stop has to go at least something below that, so you have to be trading really small. And also, what\u2019s your goal? Your goal is a conversion of a sell climax into a trading range, which means you\u2019re just looking for scalps. The range of the day so far is, what, $7, right? So a scalp might be 50 cents or so, and you have to risk probably at least a couple dollars. So not a strong buy, and I\u2019d only take that buy if I was using a wide stop well below here, and I would only take it if I were willing to scale in lower. Not a good bar for the bulls, okay? A scalp, I would buy that low and try to make 30, 40, 50 cents, but this is not doing what the bulls want it to do. This is bad, okay? And now you got a small Low 2 short. Yes, tight trading range, but to me it makes me less interested in buying right now.<\/p>\n<p>Okay, outside down, it looks like we\u2019re going lower. Another outside down. We\u2019re starting to get trading range price action, so traders will start buying below bars, below 21, below any of these bars, but they probably have to risk at least a couple dollars, and they have to be willing to scale in.<\/p>\n<p>Now, we have seven bars, eight bars down without a bull body, but they made money buying below 17. They probably will make money buying below 21, but you need a wide stop, micro double bottom\u2014might bounce. No micro double bottom, small reversal bar, sell climax. To me, I think we\u2019re going to bounce. I don\u2019t think we\u2019re going to turn into a bull trend, but I think we\u2019ll enter a dead money situation. Whenever you have a relentless selling like this, you usually do not get a bull trend, but you usually get a trading range, which is a dead money situation. Here, we\u2019re down $8, $9 on the day, so the range might be big enough for scalping 50 cents, maybe a $1 if you\u2019re lucky, but you need a wide stop.<\/p>\n<h3>Willing now to buy below bars<\/h3>\n<p>More trading range price action, so a little spike and channel here. To me, I am willing to start to buy below bars using a wide stop. You can probably sell around the moving average betting on dead money, a tight trading range. Double top bear flag, you can sell there. You can buy the new low below here, just scalp. And that\u2019s how it ended up. Daily chart \u2013 just a trading range, middle of a trading range. We are, but you basically do not want to see the market gap to a new all-time high and then sell off like that. So yes, a lot of it might be &#8212; this is the weekly chart, year-end profit taking. Traders saying, \u201cWow, what a gift at the end of the year. I\u2019m going to take it,\u201d but it\u2019s also three pushes up.<\/p>\n<p>Monthly chart, very climactic. Bull breakout in a parabolic channel with one, two, maybe three pushes up &#8212; probably not much more up \u2013 I know on Fast Money they\u2019ve been talking about what a great stock Nike is, and it might be. But there\u2019s no way I\u2019m going to buy a parabolic buy climax. I\u2019m sitting on some cash and I\u2019m looking to buy stuff, Nike is on my list of things to buy, but I am not buying up here, right? Maybe a pullback to the moving average, which is, what, 25 percent below. That, I might buy, but I\u2019m not buying a parabolic buy climax, spike and parabolic channel.<\/p>\n<h3>Comparable Emini price action<\/h3>\n<p>It\u2019s very similar to the five-minute chart in the Emini today. So, spike and a parabolic channel. This is usually what follows, not a bull trend. And the same is true with that Nike monthly chart, so we\u2019re probably going to go sideways for 10 bars. 10 bars is a year, right, so there\u2019s no rush to buy if we\u2019re going to be sideways for a year. The odds are very high that I\u2019ll be able to buy 10 or 20 percent below where we are right now.<\/p>\n<h3>Merry Christmas and closing comments<\/h3>\n<p><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/01\/christmas-2015.jpg\" rel=\"attachment wp-att-47793\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/01\/christmas-2015.jpg\" alt=\"christmas-2015\" width=\"229\" height=\"220\" class=\"alignleft size-full wp-image-47793\" title=\"\"><\/a>All right, I hope everybody has a very Merry Christmas, a good holiday. I\u2019m not trading tomorrow. I\u2019m off with the family for the next several days. I\u2019ll be back on Monday.<\/p>\n<p>Next week, I used to hate the week between Christmas and New Year\u2019s because so much of the time is in tight trading ranges, but over time I\u2019ve learned to actually like it because it\u2019s a good opportunity to work on discipline, to practice not buying high, to practice not selling low And to practice entering with limit orders &#8212; just working on discipline. So even if you play in the NBA, you still have to practice, right? It doesn\u2019t matter how many years you\u2019ve traded, there\u2019s still things that you want to see regularly so that you get practice with them, and next week, to me, is a good practice week. We\u2019re probably going to get a lot of this and this, and I don\u2019t want to be selling that, and I don\u2019t want to be buying this, I want to be looking to do the opposite. Okay. I hope everybody has a good weekend.<\/p>\n<p><em>Al Brooks<\/em><\/p>\n<p><a title=\"Al Brooks&#039; trading room\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\">Information on Al&#8217;s Online day trading room<\/a><\/p>\n<hr \/>\n","protected":false},"excerpt":{"rendered":"<p>BPA trading room Q&amp;A: December 23, 2015 Can you talk about the Nike five-minute chart? Video duration: 7min 40sec You can also view this video on Al&#8217;s YouTube Channel if needed. Video transcript\u2014Nike stock chart review Nike\u2014not an easy day&#8217;s trading Yeah. Nike was an interesting chart today. So was Freeport-McMoRan, it was way oversold [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-47783","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ask-al","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/47783","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=47783"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/47783\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=47783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=47783"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=47783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}