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Wednesday, November 16, 2005

ANF - 111605; 15-minute chart




1.) What did I see?
A gap down and weak first two bars. The third bar finds support from the 34MA and the bottom of the retracement zone (from the previous day's low to the opening range high). The fourth-seventh bars rally back above the top of the retracement zone, and the eighth bar forms a nice hammer at that level. It is also narrow range, and an inside bar.
2.) What is the entry?
A break of the eighth bar high.
3.) What is the exit?
The morning high - which was just above $1. So, instead of closing 1/2 the position after $1 gain (as I usually would), I held for the morning high target which was hit two bars later. In retrospect, I should have sold 1/2 the position at that point and held 1/2 for the Fibonacci extension. Still, it was a nice trade.

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