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Monday, February 06, 2006

CBI - 020206; 15-minute chart

I discussed this pattern in January:

"...note that when a down (red) bar is followed by an up (green) bar that matches - or almost matches - it's real body (real body is the distance between the open and close), it is a good indication of a possible reversal."

CBI provides a good example, with 1/2 of the position sold after $1 gain and the other 1/2 held for a target of the retracement zone (from the previous day's high to the opening range low); the target was not hit, and the remaining 1/2 was sold at the end of the day for $1 gain.

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