1.) What did I see?
A gap up and wide-range first bar. The second bar narrows in range and stays in the top 50% of the first bar's range. The third bar is the narrowest of the morning (NRM), and closes just above the OR high. All three bars print higher lows and form a "wedge-type" pattern.
2.) What is the entry?
A break of the third bar high.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's low to the opening range high; it was hit on the next bar.
Set-up grade = as close to an "A" as you can get.
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Tags:
Trader-X, Stocks, Fibonacci, ASML
4 comments:
Hello Trader X. I'd like to know if there is any reason you didn't enter at the break of the first bar? (e.g. too much risky).
movk - I usually don't enter on the first bar because there is not enough info for me to make a decision...as tempting as it may look, I find first bar entries more risky.
However, many of the readers trade that way and make it work. It is just a personal preference, and I do break the rule on occassion.
Trader-x
When you say your entry is the break of the 3rd bar high for exzmple, are you then placing a limit order at your pre-determined entry price?
You're teaching me alot.
thanks
Steve
Steve - if you are asking what kind of orders I use, it varies. Sometimes I use a limit order, sometimes a market order - it depends on how much I have going on and if I can watch the stocks close enough. On any given day, I have many of each type of order.
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