I did not find a lot of "traditional" set-ups Friday. But SIMO provided an opportunity with an entry on the third or fourth bar hammers.
Note the reversal at the exact Fibonacci extension of the previous day's low to the opening range (OR) high. This brings up a point discussed in "Comments" of Tom C's last post. I use a "wide line" when determining my target; in other words, I will look to exit a few cents before the exact penny because price does so often reverse at that area. In Tom C's example, price reversed .01 or .02 shy of the exact target. In SIMO, it reversed on the exact penny.
Magic I tell you. Magic.
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Tags:
trader-x, stocks, fibonacci, trading, simo
5 comments:
X, you mention "traditional" setups which I assume is what you post here. Does that mean you also trade other setups not posted here?
amir - yes. The set-ups I post here probably account for 75-80% of my type of trading. The other 20% is just that...the other 20%!
I'm curious about a third or fourth bar entry as it relates to the 5 EMA. As I understand it, you typically won't enter on a bar that is not very closely supported by the 5 EMA, which really didn't happen here until the sixth bar. Can you elaborate a little on that issue.
Thanks much. Your blog has been very educational.
Rob, IMO the entry bar was close to the 5MA. In a perfect world, it would be touching. But relatively speaking, it was pretty close.
I read X post about enough space to drive a truck through on a set-up he didn't take a few months back. On this chart, while there is space, it is still pretty close.
Rob, it is somewhat subjective but I don't think the 5MA was too far away. Brian's comments are on the money.
Nickm, I really watch the 5MA. Price never closed below it, so I did not see a reason to sell.
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