I am trying to sneak in a chart or two before the blogger outage...
If you look at past posts, you will see where I discussed set-ups above the Fibonacci extension. This is a great example - while I usually like a set-up to occur right at/above the Fibonacci extension, the entry in DESC was a bit higher. But, it was very compelling.
1.) What did I see?
A gap up and the first three bars are wide-range and take price well above the Fibonacci extension of the previous day's low to the opening range (OR) high. The fourth and fifth bars narrow in range and form inside bars (some of you may see a triangle here). And the fifth bar forms a textbook hammer.
2.) What is the entry?
A break of the fifth bar high.
3.) What is the exit?
1/2 closed when the twentieth bar broke the previous swing low (marked with a horizontal line on the chart). I held the other 1/2 to see if DESC would continue the rally. It did, and I closed the remainder of the position at the end of the session.
Notes - the total for this move was over 5% on the first 1/2, and almost 10% on the second 1/2.
No comments:
Post a Comment