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Wednesday, October 05, 2005

PFCB - 100505




1.) What did I see?
A gap up and strong first bar. The second and third bars pulled back, but the fourth and fifth bars resumed the upward move. In addition, the fourth and fifth bars matched the real body of the third (down bar)*. And, the fifth bar was a narrow range.
2.) What is the entry?
A break of the fifth bar high.
3.) What is the exit?
1/2 closed after $1 gain, the other 1/2 closed at the end of the day.

*when you have a wide range bar in one direction, and it is followed by a widerange bar in the opposite direction, this often time signals a reversal. I will post some other charts in the future showing this...

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