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Monday, October 23, 2006

HAS - 102306; 15-minute chart

I have been trading 30-minute charts (exclusively) for several weeks, so today I decided to focus on 15-minute charts.

I found a great opportunity in HAS. It gapped up and after a brief pullback it rallied back through the opening range (OR) high. The eleventh bar formed a textbook hammer on top of the OR high, with added support from a rising 5MA. I entered on a break of that bar's high.

Price then rallied to the Fibonacci extension of the previous day's low to the OR high. Note how the fifteenth and sixteenth bars are rising off the 5MA, with the sixteenth bar closing just above the Fibonacci extension. This sets up a second entry, or in my case since I was already in the position it meant I held instead of closing it. Price continued to rally, and I closed 1/2 the position after $1 gain. I closed the other 1/2 on a break of the twenty-second bar low.

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