1.) What did I see?
A gap down and very wide-range first bar. The second bar narrowed in range and formed a textbook hammer on the opening range low. t below the opening range high.
2.) What is the entry?
A break of the second bar high.
3.) What is the exit?
The target was the retracement zone from the previous day's high to the opening range low. It was hit several bars later.
021606 edit - Englishman Trader points out that I drew the opening range low at the bottom of the second (15-minute) bar, as opposed to the bottom of the first bar which is what I usually do. This was a mistake on my part when getting the chart ready to post to the blog. So, adjust it on your charts - it does not change the rationale for the trade.
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