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Tuesday, September 26, 2006

EYE - 092606; 30-minute chart

posted by Tom C:

EYE was a great short on an overall up day. The entry was above the OR low, so X's standard disclaimer* applies. I entered on a break of the 4th bar low, which was the NRM. The Fibonacci extension was not hit, but I held until the end of the day for a nice gain.

*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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5150 said...

Tom C.......nice trade. Its interesting, my 4th bar doesnt look like yours which is why i didnt take that trade. I use TradeStation and my 4th bar is more of a spinning top. Anyway, nice trade...

Kayakhandy said...

I would not have taken the EYE short trade...Did not really care for that huge space between the the previous close and lower gap.

There is no doubt you entered the short trade at exactly the right time but that later dragonfly Doji like candle followed by the red hammer showed some kind of weird strength and scared me from even thinking about going short in the afternoon...the long side trades were just to easy compared to the shorts for me.