I mentioned that "there were a lot of nice set-ups and moves off the low (after a gap down) with the 34MA and retracement zone as a target". NEM is a good example.
1.) What did I see?
A gap down and hammer-like first bar that closes red - I don't take first bar entries often, as they are less reliable and the red close was another reason to pass. But, the second bar narrowed in range and had a nice green "real body" (real body = distance from the open to the close) that offset the red "real body" of the first bar. It did not sell-off, and closed strong; looking at the first two bars you see a nice move off the opening range (OR) low.
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 OR low. Price rallied into that area over the next five bars.
Set-up grade = B; it is hard for me to give an A, but this was a solid set-up.
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Tags:
Trader-X, Stocks, Fibonacci, NEM
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