I like perfection. What is perfection? When price stops EXACTLY at the top of the retracement zone - the first bar closes on it, and the second bar rallies from it...even though the first bar is very weak, this kind of action at a support zone is bullish. If the first bar had closed below the top of the retracement zone, or there were several bars in and out of the retracement zone, I would not have been bullish.
1.) What did I see?
A gap up and weak first bar. See above for why I considered the close of the first bar and the second bar's move bullish. The third bar was an inside bar, narrow range, and "hammer-like".
2.) What is the entry?
A break of the third bar high.
3.) What is the exit?
1/2 closed after $1 gain, the other 1/2 closed at the end of the day. The long shot target was the Fibonacci extension of the previous day's low to the opening range high, which was not hit. But this was a great trade.
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