I mentioned TOPT earlier today, and said "I just closed 1/2 the position and will wait to see how price acts as it tests the morning high."
It turns out that price could not break through the morning high with any decisiveness, and I closed the remainder of the position at the end of the day. Although it did not make a move to the Fibonacci extension, it was still a profitable trade returning around 6%.
Here is an abbreviated summary:
A gap up and two weak, wide-range bars that move down to the retracement zone (from the previous day's low to the opening range high). The third and fourth bars reverse and move off the morning low at the retracement zone. The fourth bar is an inside bar, and the narrowest range of the morning. Although it closes weak, it leaves a lower tail/wick that is somewhat bullish, and looking at the big picture (as I just outlined) the overall price action was bullish.
Set-up grade = B
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Tags:
Trader-X, Stocks, Fibonacci, TOPT
2 comments:
Check out ICE from Monday. Nice move, inside bar.
It does not get much better than that - narrow range, inside bar and a nice move to the Fib extension. Great trade.
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