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Monday, January 29, 2007

FRPT; 012907; 15-minute chart

This is similar to some of Tom C's trades last week - there were a few red flags (namely an entry above the OR low), but I entered the trade aware of the increased risk.

FRPT gapped down and printed a red first bar with upper and lower tails (somewhat indecisive, but overall bearish). Price drifted up and narrowed in range over the next five bars. The sixth bar was a narrow-range (NRM), inside bar that formed at resistance from the declining 5MA (and formed a "hanging-man" type candle).

I entered on a break of the sixth bar low, and covered at the Fibonacci extension of the previous day's high to the OR low.

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KayakHandy said...

Good short trade! I liked the building volume also.

Charles (San Fran) said...

Nice trade. That thing really rolled over and collapsed.