CERN offered a wild ride with a couple of good set-ups today - one short and one long.
Short:
1.) What did I see?
A large gap down and a wide range first bar that leaves a long upper and lower tail/wick, and ultimately closes red. The second bar is more narrow range, and an inside bar. It also leaves a long upper and lower tail/wick, and ultimately closes red. And, the second bar stayed in the lower 50% of the first bar's range.
2.) What is the entry?
A break of the second bar low.
3.) What is the exit?
1/2 closed after $1 gain. The other 1/2 closed at the Fibonacci extension of the previous day's high to the opening range low.
Long:
1.) What did I see?
The third bar rallied from it's low, leaving a long lower tail. The fourth bar then formed a nice hammer; it was also an inside bar, and narrow range compared to the previous (third) bar.
2.) What is the entry?
A break of the fourth bar high.
3.) What is the exit?
1/2 closed after $1 gain. The other 1/2 closed at the retracement zone from the previous day's high to the opening range low (last bar of the day).
A lot of points in one stock.
Notes - once you entered long on a break of the fourth bar high, you needed to pay special attention to the Fibonacci extension which could now act as resistance. Price chopped around that level for two bars, and then broke out.
I have a chart to post from "Viewer Mail", but I am a little under the weather tonight. So, check back in the morning and I should have it up.
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