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Tuesday, January 17, 2006

BCRX - 011706

I have not posted a 30-minute chart in a few weeks. I still trade them, but the readers prefer 15-minute charts; but, I will still mix in one or two every few weeks.

1.) What did I see?
A gap up and wide-range first bar. The second bar is narrow range, an inside bar, and forms a nice hammer.
2.) What is the entry?
A break of the second bar high (being aware that if price stalls or reverses at the previous opening range high, I would exit*).
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 low to the opening range (OR) high (both targets hit on the next bar).

*as with any entry below/above a previous high/low (in the case of my charts, the opening range (OR) high/low), you need to watch for resistance/support as price approaches those levels. If it stalls, you want to exit. If it breaks through, the odds are good you will have a move to the corresponding Fibonacci extension.

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