1.) What did I see?
A gap up and wide-range first bar that left an upper tail. The second, third, and fourth bars "filled the tail", and printed higher lows and higher highs. The fourth bar was also the narrowest of the morning (NRM), and closed just below the OR high.
2.) What is the entry?
A break of the fourth bar high.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's low to the OR high. It was hit six bars later. In retrospect, I could have held until a break of the thirteenth bar low...but, it was still a good trade.
Set-up grade = B - only because the entry 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, srcl
2 comments:
nice trade x.
maybe when you & tom get the urge, you could describe the road that lead you to independent professional traders?
thanks
Just found your blog and spent the last hour going though it. Unreal. What a great site. Thanks.
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