SRLS - 122005

I was watching SRLS because it had a huge gap down - almost 50% from the previous day's close.

1.) What did I see?
A huge gap down, but the first bar rallied from the low. The second and third bars were narrow range, and although they were red did not close below the low set by the first bar. The fourth bar was narrow range, a hammer, and closed strong (above the low set by the first bar).
2.) What is the entry?
A break of the fourth bar high.
3.) What is the exit?
The target was the retracement zone of the previous day's high to the opening range low - it was not reached. The seventh bar sold off from the high leaving a long upper tail/wick. The position was closed on a break of the seventh bar low.

Notes - the total move for this trade was over 20%. It was a simple set-up, and you have to watch for them because when they happen they can make your week.