Welcome to the Trader-X blog!

> TRADEthemove.com - my thoughts
> meditationSHIFT (formerly "tad")- just say "om"

Tuesday, January 10, 2006

HDI - 011006; 15-minute chart

A trade later in the day - as I have said in the past, when price sets-up above a Fibonacci extension, there is a good possibility that it can continue to rally.

1.) What did I see?
A gap down and rally through the retracement zone and above the 34MA. Price continues to rally to the upper Fibonacci extension. The twelfth bar is narrow-range (NR7), and forms a hammer on top of the Fibonacci extension.
2.) What is the entry?
A break of the twelfth bar high.
3.) What is the exit?
The position was closed at the end of the day. You might have been tempted to close it when price started to pullback around 2:00, but I was watching that pullback in relation to the wide-range sixteenth bar. It did not penetrate that bar enough to worry me, and the rally continued into the close.

No comments: