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Friday, March 03, 2006

Thursday's charts

One that worked:

GG - 030206; 15-minute chart

The entry was a break of the fourth bar high - the fourth bar was a narrow range (NR3), inside bar that formed a nice hammer.

and, one that didn't:

RIG - 030206; 15-minute chart

Hindsight being 20/20, I would have preferred more bullish signs - an inside bar, higher lows...but, the loss was minimal as it was apparent with bars six-eight that price was failing just above the opening range high. That is why I always print this warning on entries below (above) the opening range high (low):

"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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