Posted by Tom C.
Since it is a short week, I am tending to a lot of personal business. It is likely this will be my only post until next week.
Here are two charts - one from Tuesday and one from today.
GG was a "reversion to the mean" trade. It gapped down and printed four strong bars, with the 4th bar being the NRM and a hammer-type candle. I entered on a break of that bar's high and closed the position at the 50% level (Fibonacci lines plotted in classic X-style - the previous day's high to the OR low).
PFG was an interesting trade. It gapped up and after a pullback it rallied to close above the OR high. I entered on a break of the 10th bar high; it was a little extended from the 8EMA (white line), but I liked that it closed strong above the OR high and left a long lower tail. I closed the position at the FE (again, Fibonacci lines plotted in classic X-style).
A Simple Mistake Traders Make
7 hours ago