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Sunday, January 29, 2006

PHTN - 012706; 15-minute chart




Not a "normal" set-up, but one that caught my eye.

1.) What did I see?
A gap up and wide-range first bar. The second-fourth bars narrow in range and form inside bars near the opening range high (some of you may see a triangle forming here). In addition, the fourth bar is weak leaving a long upper and lower tail/wick (represents indecisiveness).
2.) What is the entry?
A break of the fourth bar low.
3.) What is the exit?
The target was the retracement zone from the previous day's low to the opening range high. Also, the 34MA was rising and corresponded nicely with the bottom of that retracement zone. PHTN hit that area and reversed shortly after 1:00.

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