1.) What did I see?
A gap down and wide-range first bar. The second and third bars narrow in range and drift below the OR low, all closing below that level. The third bar was also an inside, narrow range (NRM) bar.
2.) What is the entry?
A break of the third bar low.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's high to the opening range low; it was hit at the end of the day.
Set-up grade = A; the entry was below the OR low and everything was in place for a nice short.
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Tags:
trader-x, stocks, fibonacci, trading, mscc
3 comments:
I thought it was interesting how it stalled out at the extension of the OR low on the 15 minute chart. I didn't know jack about Fibs before coming to this site but now I am sold!
Hi, I was wondering with MSCC why you did not exit with profits at the break of the 9th bar high? Thanks.
TTT - My opinion is that the 9th bar high would have been a good place to take partial profits. However, given that price did not stall out at the 50% point (of the 1.38 extension), the probabilities favored a test of the 1.38 extension.
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