Posted by Tom C.
This was a higher risk setup, but I liked the movement off the open. I rarely enter before the third bar is complete, but this is the exception. Price gapped above the previous day's high and the first bar printed a lower tail and although it closed red, it was above the halfway point of its range. The second bar was strong, opening at the low and closing at the high - and taking out the high of the first bar (and the high of the morning).
I entered on a break of the 2nd bar's high (again, a higher risk setup), and closed the position when it hit $5 thinking that area (a whole number) would provide resistance (and, it was just below the FE as shown). A great trade and a quick profit.
I have not found the time to respond to some of the previous comments. I apologize, but the blog is about 10th on my "todo" list right now. I will try to post some additional charts and answer comments later this week.
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