1.) What did I see?
A gap down and wide range first bar. The second bar is indecisive with a long upper and lower tail/wick. The third bar is narrow range, an inside bar, and closes weak.
2.) What is the entry?
A break of the third bar low.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's high to the opening range low. It was not hit, but price drifted lower for the entire session. The position was closed at the end of the day. The total move for this set-up was ~6%!
Notes - 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. PPC made a solid break below the OR low on the fourth bar.
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