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Friday, April 20, 2007

SMSI - 041907; 15-minute chart

1.) What did I see?
A gap down and wide-range first bar. On the fourth bar, price rallies back to the declining 5MA; it then reverses and resumes the downtrend. The eleventh bar closes below the OR low. The twelfth bar consolidates, and the thirteenth bar forms a hanging-man candle that also closes below the OR low.
2.) What is the entry?
A break of the thirteenth bar low.
3.) What is the exit?
The target was the Fibonacci extension of the previous day's high to the OR low. It was hit five bars later.

Set-up grade = "B+"

note - Trader Jamie also traded SMSI.

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1 comment:

estocastica said...

Beautiful trade. Btw, we made it to SD yesterday. I was quite impressed with the natural beauty of Texas; I want to spend more time some day exploring the region. Anyway, all is well in CA and I look forward to seeing you out here soon! Hope things are going great for you.