1.) What did I see?
A gap down and wide-range first bar. The second through fourth bars all narrow in range, with the fourth bar being the narrowest of the morning (NRM) and an inside bar. It also forms a "hanging man" type candle and closes weak.
2.) What is the entry?
A break of the fourth bar low*.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's high to the opening range low; it was hit after 2:30.
Set-up grade = B (the entry was above the OR 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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Tags:
Trader-X, Stocks, Fibonacci, KLAC
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