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Monday, November 07, 2005

THC - 110705; 15-minute chart




1.) What did I see?
A gap down and rally into resistance from the retracement zone of the previous day's high to the opening range low. There is a nice "rollover" in bars two-five. The fifth bar makes a strong move back down, and the sixth bar is narrow range.
2.) What is the entry?
A break of the sixth bar low.
3.) What is the exit?
The target was the morning low - it was not reached, and the position was closed at the end of the day. Even though the target was not reached, the trade still netted ~3.5%.

Notes - the stop was .05 from the entry, allowing a nice size position. That is the advantage of entering on a narrow range bar.

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