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Monday, September 19, 2005

PDG - 091905




1.) What did I see?
A gap up but the first bar is very weak. The second bar rallies, but the third bar collapses and closes at a new low. The fourth and fifth bars are narrow range, with "upper tails".
2.) What is the entry?
A break of the fourth (not triggered) or fifth (triggered) bar low.
3.) What is the exit?
For this trade, the 34MA was a perfect target - being aware of potential resistance from the "retracement zone" denoted by the three white lines (38.2, 50.0, 61.8% retracement of the previous day's low to the opening range high.

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