Posted by Tom C.
Trader-X will return soon. Until then, you are stuck with a few more posts from me.
Another trade I like is a setup that forms around the OR high (or low for a short). DRYS is a great example. Price gapped up and remained strong. It bounced around the OR high (the first 30-minutes - see the black line on the first chart) and the 9th and 10th bars stabilized above it, and narrowed in range. The 10th bar was a hammer-type candle, and I entered on a break of it's high (yellow arrow).
For my exit, I plotted my Fibonacci lines over the morning's high (including the 4th bar) to the previous day's low (see the second chart). I sold at the FE.
There were a lot of great "u-turn" setups Friday. A few I traded were PNC, ADBE, and FDX.
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