1.) What did I see?
A gap up and weak first three bars that sell-off to the retracement zone from the previous day's low to the opening range high. The fourth bar forms a hammer on top of that retracement zone.
2.) What is the entry?
A break of the fourth bar high.
3.) What is the exit?
1/2 was sold after $1 gain; the target for the other 1/2 was the Fibonacci extension of the previous day's low to the opening range high. It was hit in the late afternoon.
Set-up grade = A!
Notes - I watched WEN closely as it approached the morning high. This was a probable place for price to reverse, so I was prepared to close the position if it broke the seventh bar low. That did not happen, and the eighth bar rallied through the opening range high.
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Tags:
Trader-X, Stocks, Fibonacci, WEN
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