1.) What did I see?
A gap up and wide-range first bar. The second bar is an inside, narrow-range bar. The third bar is a narrow-range bar that forms a textbook hammer. Both the second and third bars stayed in the upper half of the first bar's range (bullish).
2.) What is the entry?
A break of the third bar high*.
3.) What is the exit?
1/2 was sold at the Fibonacci extension of the previous day's low to the opening range high; the other 1/2 was held until the end of the day. I would have closed the remaining 1/2 had price fallen back below the Fibonacci extension; it did not, and LOW finished the day at it's high.
Set-up grade = B (it was below the OR high)
*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.
__________
Tags:
Trader-X, Stocks, Fibonacci, LOW
1 comment:
LOW was a great trade...pleased to say I caught it.
Post a Comment