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Monday, November 14, 2005

KSS - 111405; 15-minute chart




Many of you will be happy - I took a loss on KSS today!

1.) What did I see?
A gap down and rally to the retracement zone of the previous day's high to the opening range low. The third bar closed strong above the 34MA.
2.) What is the entry?
A break of the third bar high.
3.) What is the exit?
The first target was the previous day's high - which was not hit.

Hindsight analysis - this was a bad trade, as opposed to a good trade that did not work out. My logic was that price was strong and crossed above the 34MA - which in the past has been a good play. BUT, price was still caught in resistance from the retracement zone, and although the third bar was strong it was not a real signal for me. Had price crossed the 34MA above the retracement zone and then formed a hammer, this would have been a compelling trade.

As it stands, this trade was poor judgement on my part.

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