My weekend is delayed a few hours, so I thought I would take the chance to post a chart. Check back this weekend for more charts.
FMBI amazed me because there were hardly any red bars - it was steady and strong throughout the day and closed at the target (Fibonacci extension).
1.) What did I see?
A gap up and wide-range first bar. It left a long upper tail/wick which was a concern, but price started a steady climb with the second bar. The fifth bar formed a nice hammer, and closed strong.
2.) What is the entry?
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 at the end of the day.
Set-up grade = B; the entry was below the OR high.
*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. FMBI broke through the OR high after 1:00, and never looked back.
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Tags:
Trader-X, Stocks, Fibonacci, FMBI
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