Trade: Long EZPW APR 2010 $20 Calls - 10 contracts at $1.55 each
Set-up: 16-Mar-10 %R retest...retest inside bands...near 20 day MA...big volume on retest.
Conditions: Efficiency Ratio, Stochastics, ADX/DMI are all very bullish..
Re-Entry: none.
Exit strategy: 20.12 is violated on daily chart.
Target for profit taking: Sell entire position at 75% profit.
Time Frame: Prepared holding 3 weeks.
Where found: Stocks on the move
Emotions:
EZPW is a strong IBD stock since entering the trade it has not rebounded nicely, and the %R has not gone back above overbought, this isn't a very clean retest and I may remove the trade in lieu of other opportunities.
Also the retest occured well inside the accel bands and this is also sub-optimal according to new learning from Price Headley.
Daily and Hourly Chart below.
