HPQ Silicon Inc V.HPQ

Inverse Hammer Pattern

[Casey1989]

for everyone who wants to know my general rule of thumb with next day candles after an inverted hammer for day trading: **disclaimer** I already hold quite a large position in HPQ but i will be looking at this stock and NOVR for signs of a break out pattern as they have both formed intriguing patterns to day trade off of. Rule #1. is simple CONFIRMATION,    what is confirmation you might ask? Confirmation is when the price resumes or can gap up on heavy volume and the candle looks to break through the upper wick of the previous candle. Rule #2. For day trading especially SET STOP LOSS minimize your risk as much as possible, when day trading you are looking to pull profit off the markets over and over in a consistent manner, if you loose some or all of your capital that you have assigned to the front lines on a daily basis will decrease and so will your potential for profits exponentially decrease. Rule #3. ADAPT TO THE SITUATION as an experienced trader i have seen so many dam candles go side ways and so many patterns and divergences, fake outs, break outs, flash crashes... and the list goes on. Only trade in situations that you feel comfortable doing so! Need practice? Practice paper trading, Think or Swim through TD ameritrade offers a great paper trading service where you can hone your skills and learn the consistency and discipline you will need to make it in the market in this day and age.

Well in the current case of HPQ I will reference HPQ chart:
https://www.tradingview.com/chart/HPQ/F8qURBhf-HPQ-Inverse-Hammer-Formed/

for myself to enter into HPQ (day trade) and confirm a break out pattern I will be looking for buying volume to be quite heavy from the get go as well as price action that clears 75c, putting a stop loss on at 71c for 50% of position and 69c for the remaining 50%, if we continue to accelerate I will change that stop loss to a break even point and than I will be looking at taking profit 79-83c for 1/3 of position size. I may decide to continue with 1/3 of my position as a swing trade depending alot on what happens but i will be looking to take 2/3 of my position off of the table if the cards line up right.

NOTE OF INTEREST: The fact that the 50 fib level has been tapped with a .382 close is quite promising. with a major catalyst most likely in the cards we could be seeing growth of a new bull flag pole in the upwards ranges of 25-32% depending when that catalyst does fall.

***DOWNSIDE RISK*** There is a saying in the stock market "Gaps Fill" there is quite a juicy gap down at 60-57c that provides a massive support level, this is somewhere I would be looking to add to my long term core position as there is previous resistance and a confluence of support. if you believe in this company and do not believe the underlying fundamentals of HPQ have changed than why would you capitulate losses to the bears?

[Oden6570]

" STOP LOSS " Someone call the Sheriff !! Crooks hovering and they want your shares !

[Casey1989]

I only suggest stop losses for day trading, for long term core positions too each their own