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Monday, October 10, 2005

DCN - 101005

1.) What did I see?
A gap down and weak first bar. The second bar attempted to rally, but left a long upper tail (bearish). The third bar was a weak candle, narrow range, inside bar.
2.) What is the entry?
A break of the third bar low.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's high to the opening range low. It was not reached, and the position was closed at the end of the day. DCN is a low-priced stock, and the total move for this trade was over 10%.

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