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Monday, October 31, 2005

ABX - 103105; 15-minute chart




1.) What did I see?
A gap down and weak first bar. A narrow range second bar that was also an inside bar, and a weak candle.
2.) What is the entry?
A break of the second bar low.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's high to the opening range low - hit three bars after the entry.

Notes - if the first bar had rallied more from the low, I would have been reluctant to take this set-up as price would have been showing signs of strength. But - even though ABX rallied a little off the low - it still closed very weak making this an appealing trade.

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