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Sunday, November 13, 2005

TXU - 111105; 15-minute chart




A set-up you should all be familiar with by now!

1.) What did I see?
A gap down and strong rally up (first three bars) into the retracement zone, and the 34MA. The fourth bar sold off from the high, leaving a long upper tail (bearish), and closing back below the 34MA. Though I would have preferred the bar be weaker (perhaps red!), the resistance described above was enough to compel me to pull the trigger.
2.) What is the entry?
A break of the fourth bar low.
3.) What is the exit?
1/2 closed after $1 gain, the other 1/2 closed at the end of the day. The "actual" target was the morning low, which was not hit as TXU went into a kind of sideways consolidation. But this was still a great trade.

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