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Wednesday, July 26, 2006

Something a little different...

This trade was a little different than what I normally post. But, I thought it was interesting and wanted to share it.

1.) What did I see?
A gap up and subsequent collapse. FISV finds support at the bottom of the retracement zone from the previous day's low to the opening range (OR) high (and the moving averages). Price rallies over the next several hours, and the fifteenth bar finally closes back above the OR high. The next two bars form narrow-range, inside bars with the seventeenth bar being the narrowest of the day, and closing above the OR high.
2.) What is the entry?
A break of the seventeenth 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 remaining 1/2 was sold on a break of the twenty-second bar low.

Set-up grade = B+

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1 comment:

5150 said...

X.... I went long YCC on break of 3rd bar 30min with a stop below same bar...the 5th bar was narrow and inside so I moved stop to below that bar and needless to say got stopped out of a great trade...was that wrong?