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Saturday, January 06, 2007

Friday's charts

NYX gapped up and printed a wide-range, strong first bar. The second bar broke the OR high, but left a long upper tail which was a concern. The third, fourth, and fifth bars narrowed in range and pulled back to the rising 5MA and the OR high. Note how the fifth bar closed above the OR high - a bullish sign.

The sixth bar was the narrowest of the morning (NRM) and closed strong (it was moving up off support from both the OR high and the 5MA). I entered on a break of that bar's high, and closed the position three bars later when price hit the Fibonacci extension of the previous day's low to the OR high.




BRLC gapped up and printed a wide-range, strong first bar. The second, third, and fourth bars narrowed in range and - after penetrating the OR high - pulled back to a rising 5MA. The fifth bar bounced off support from the 5MA, and closed strong back above the OR high. It was also a form of the "offsetting bars" set-up I have discussed many times.

I entered on a break of the fifth bar high*, and sold a few hours later when it hit the target (the Fibonacci extension of the previous day's low to 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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1 comment:

Gary said...

I wouldve posted a chart here but don't l know how-AGIX was a nice one on Friday