Posted by Tom C.
AEM gapped up and printed a strong first bar, with the next few bars staying above the halfway point of the first bar's range. I plotted my Fibonacci lines over the OR high to the previous day's low (classic X-style). The 4th bar broke the 50% retracement, but the 5th bar formed an "offsetting bar" and made a hammer-type candle, closing back above the 50% retracement and the halfway point to the high.
I entered on a break of the 5th bar's high (first yellow arrow), and closed the position at the FE. I entered another position on a break of the 11th bar's high (second yellow arrow). It was a classic "beyond the Fibonacci extension setup" (if you are not familiar with the term, search the blog). The 11th bar was also a hammer-type candle, and formed on support at the Fibonacci extension. I closed the position on a break of the bar indicated by the blue arrow.
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