1.) What did I see?
A gap down and strong move up into [probable] resistance from the retracement zone of the previous day's high to the opening range low. Note how price stopped and reversed sharply at the end of the first bar and into the second bar (also note resistance from the 34MA, along with the retracement zone). Bars three-eight were narrow range and consolidated around the bottom of the retracement zone; bars six-eight also tested resistance from the declining 34MA. Bar eight was the narrowest range, and an inside bar.
2.) What is the entry?
A break of the eighth bar low.
3.) What is the exit?
The target was a move back to the morning low. I could have closed 1/2 the position and held 1/2 for a target of the Fibonacci extension, but the broader market was strong so I took profits.
Notes - wow, a good set-up works a lot better than a bad set-up.
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