Welcome to the Trader-X blog!

> TRADEthemove.com - my thoughts
> meditationSHIFT (formerly "tad")- just say "om"

Monday, February 06, 2006

REDF - 020206; 15-minute chart


1.) What did I see?
A gap up with the first six bars narrowing in range and staying in the upper 1/2 of the morning range (some of you may see a triangle pattern here). The sixth bar is the narrowest range of the morning, and an inside bar.
2.) What is the entry?
A break of the sixth bar high.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's low to the opening range high - this was just over $1 gain, so instead of closing 1/2 after $1 as I usually do, I held the entire position and closed it when it hit the Fib extension two bars later.

Note - some of you may have taken a second entry as REDF set-up above the Fibonacci extension (fourteenth bar?)- I missed that trade but congratulations if you took it.

No comments: