posted by Tom C:
Great post by X below on "Chasing success". I could not agree more.
I took an interesting trade in NTGR on Friday. It had a few "red flags" - the entry was above the OR low, and as X would say that 1st bar was crazy wide. But, the 1st bar also closed weak and below the 50% mark of its range, and it left a long upper-tail (bearish). The 2nd bar was a narrow-range, inside bar, and a "hanging man" type candle. And the 5MA was declining and serving as overhead resistance.
I entered on a break of the 2nd bar low. The target was the Fibonacci extension of the previous day's high to the OR low, and it was hit two bars later.
trader-x, stocks, fibonacci, trading, ntgr