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Tuesday, June 05, 2007

FRPT - 060407; 10-minute chart

posted by Tom C:

I have been catching a lot of "beyond the Fibonacci extension set-ups" lately. FRPT was a good example - it gapped down and left a hanging-man set-up on the 5th bar, but I missed it. The 11th bar broke below the Fibonacci extension of the previous day's high to the OR low, and the 12th bar was weak and left a long upper tail at resistance from the declining 5MA.

I entered on a break of the 12th bar low, and covered on a break of the 26th bar high (marked on the chart).

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Mr. Steady said...

hi Tom/Trader-x:
I been following the blog for awhile, I think I am starting to get what you guys are doign(great great job btw, and thank you) But my biggest question is what factor or method do you use in getting out a trade early, other than the market close or hitting preset target. I dont' see the past post talking about this , if you did , could you please show me the link.
once again, appreciate what you guys are doing, I been learning alot.

Anonymous said...

If it is beyond the Fib extension, I usually look for a candle signal indicating a possible reversal. Also, you can estimate a target by doubling the distance from the OR low to the Fib extension.

Tom C.

Anonymous said...

Works good to catch the ones that collapse too. Great job.