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Wednesday, June 06, 2007

Beyond the Fibonacci extension...

posted by Tom C:

I mentioned earlier this week that I have been taking a lot of these set-ups lately, and ETFC was a nice opportunity today.

Price gapped up and rallied above the Fibonacci extension of the previous day's low to the OR high. The 8th bar closed above that level, and the 9th bar formed a hammer at support from the same level and a rising 5MA. The only negative was that the hammer closed red, not green.

I entered on a break of the 9th bar high and sold as the last bar of the day took out the previous bar's low. My criteria for selling was a bar closing below the 5MA, and the next bar breaking that bar's low. That criteria was not met until the end of the day.



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3 comments:

Mr. Steady said...

Thanks, Tom. For clarify the criteria for exiting trades. That helps alots.
When I trying to Scan/analyse the trades on my own. I realise there is a problem where i missed trades or entry on a stock that I been watching wholeday, because I was checking other charts. I have a dual monitors setup, but there are only few charts window I could fit on the screen in additions to scanning/trading platforms/ie window...etc. So i have to keep flip stock symbols throughout the day. And that cause me missing some of the opportunity. I was wondering if you or X talked about this matters before!? how do you cope with following most of your watching list.(or maybe some screenshot on how you organize your charts whould helps alot.) Thanks again :)

H.G. said...

I like these setups, it is a good way to catch the runners. Thanks for the great blog.

Randal said...

If I remember correctly, X does not have alot of charts open. He flips through them on his watchlist. Check links to key posts at the top of the page.