I took a break from the "bread and butter" set-ups as we had discussed many last month, and some readers emailed me to request I highlight other set-ups.
So, after a short break, here is a new one from today:
1.) What did I see?
A gap down and rally from the low with the first two bars. The second bar is especially strong and wide range as it moves into the retracement zone from the previous day's high to the opening range low. But the third bar is stopped at the top of that retracement zone and reverses to close weak, leaving a long upper tail/wick.
2.) What is the entry?
A break of the third bar low.
3.) What is the exit?
A break of the twelfth bar high. It was apparent with both the eleventh and twelfth bar that NTY might be bouncing off the opening range low - the eleventh bar forms a hammer and the twelfth bar is green and closes strong.
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