Viewer Mail - 061306

I received the following email from Jerry, and thought it was worth sharing:

"X, I wanted to thank you for your blog. I have learned much, and am an avid reader. I wanted to share a trade with you. I went short JBL on the 30-minute chart, 6th bar "hanging-man", very narrow range. But I made a stupid mistake. I listen to you and always watch the 50% line between the low and the fib extension, but I forgot to consider it when I went short here. I was quickly stopped out, and looking back it was clear that price bounced off that 50% line. In fact, the 3rd bar left a lower tail and closed just above the line. The 4th bar was strong. If I had been looking at the overall picture, I would have gone long and had a nice gain.

Thanks for everything. And Entourage was great Sunday night!!!"

I posted a copy of the chart below. The black line is the 50% point between the low and the Fibonacci extension.



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Tags:
Trader-X, Stocks, Fibonacci, Trading, JBL