1.) What did I see?
A gap up and wide-range first bar that falls to the retracement zone and leaves a lower tail (somewhat bullish). The second-sixth bars work there way up, printing higher lows and mostly equal highs; these bars stay in the upper half of the first bar's range. The sixth bar is a narrow range (NRM), inside bar that closes strong (at it's high).
2.) What is the entry?
A break of the sixth bar high* (some of you may have entered on a break of the "hammer-like" fourth 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 at the end of the day.
Set-up grade = B (the set-up 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.
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Tags:
Trader-X, Stocks, Fibonacci, Trading, IVAC
1 comment:
nice trade!
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