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Thursday, February 02, 2006

ASPV - 020206; 15-minute chart

I'm back, and thought I would post one more chart.

1.) What did I see?
A gap up and wide-range first bar. The second and third bars are narrow-range, and the third bar is an inside bar and a hammer-like candle.
2.) What is the entry?
A break of the third bar high*. If you missed this entry, ASPV offered another chance on a break of the fifth bar high.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's low to the opening range high; it was hit four bars later.

*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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