1.) What did I see?
A gap up and wide-range, weak first bar. The second bar reverses that weakness and the third bar makes a nice rally. The fourth bar is narrow range, forms a hammer, and closes strong.
2.) What is the entry?
A break of the fourth bar high (being aware that if price stalls or reverses at the previous opening range high, I would exit*).
3.) What is the exit?
The target was the Fibonacci extension of the previous day's low to the opening range (OR) high. Price chopped around the OR high for six bars and then rallied out of that area. The target was hit before 2:00.
Notes - there was also a nice entry on a break of the eleventh bar high - the eleventh bar rallied off the OR high and formed a hammer-like bar, closing strong.
*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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