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Thursday, March 16, 2006

One short, one long

I am meeting some friends for Mexican food and Margaritas, but I wanted to post a few charts and some quick analysis. I have a few more interesting charts to post later tonight, so check back. Provided, of course, that I don't have too many Margaritas.



RCL - 031606; 15-minute chart



A gap down and failure to rally past the 50% line of the first wide-range bar. The fourth bar is the narrowest range of the morning, leaves an upper tail/wick, and closes weak. The entry is a break of the fourth bar low*, and the target was the Fibonacci extension of the previous day's high to the OR low - it was hit five bars later.


IFO - 031606; 15-minute chart



IFO was on my list this morning and had lower volume than I usually trade. But I could not resist the set-up.

A gap up and wide range first bar. The second bar is an inside bar, forms a hammer, and closes strong. The third bar is the narrowest range of the morning, forms a hammer, and also closes strong. The entry is a break of the third bar high*, and the target was the Fibonacci extension of the previous day's low the OR high - it was hit three bars later.

*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.

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2 comments:

Barb said...

You should have titled this post "one short, one long, one frozen". Have fun.

Trader-X said...

Ahhh - but, it was more than ONE frozen!