A "so-so" trade with a good lesson - my $1 rule can save the day!
1.) What did I see?
A gap up and first three bars narrowing in range, with higher lows and a relatively flat type (wedge-like pattern). The third bar is not a hammer, but I can make the argument that it is "hammer-like"*. It is also an inside bar.
2.) What is the entry?
A break of the third bar high.
3.) What is the exit?
1/2 closed after $1 gain. The other 1/2 closed on a break of the eighth bar low. I chose to close the remainder of the position because the sixth bar was extremely weak and wide range, and the seventh and eighth bars appeared to be consolidating before another move down.
Notes - I mentioned this in the HURC post today, and it is worth repeating. This is one of the advantages of having fewer positions - you can monitor them better.
*In retrospect, the upper tails/wicks on all three bars might have foreshadowed a weak move. Hindsight is always 20/20...and, I am happy with $1 on 1/2 of the position!
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