Welcome to the Trader-X blog!

> TRADEthemove.com - my thoughts
> meditationSHIFT (formerly "tad")- just say "om"

Wednesday, October 12, 2005

PKZ - 101205

1.) What did I see?
A gap down with a very wide range first bar. The second and third bars were narrow range, and the third bar was a bearish candle.
2.) What is the entry?
A break of the third bar low.
3.) What is the exit?
1/2 closed at the day's low (hit). I planned to close the other 1/2 at the Fibonacci extension of the previous day's high to the opening range low, but bailed out on a break of the eighth bar...this bar was a very narrow range compared to the previous four bars, and signaled a probable reversal. It turned out to be a great call, as PKZ rallied from that point.

No comments: