BGS is a classic setup that happens multiple times a week. I have posted charts of this particular setup for years, and it still works flawlessly and has a substantial success rate (well north of 80% when combined with the other factors I consider in taking a trade). I've said it before - if you pick one setup and focus on it, and don't allow yourself to overtrade or get suckered into trading subpar setups, you can be highly successful.
BGS gapped up, topped out, and made an orderly pullback that didn't close below the 50% mark of the morning's range. The 4th and 5th bars were "offsetting bars" as I like to call them, and the 5th bar was strong, had support from a rising 5EMA, and closed at its high (not to mention it was a narrow range bar, for those of you that follow that kind of thing). I entered on a break of the 5th bar's high, and exited at $17.00 (just above the Fibonacci extension (FE)). The target was hit in under 30 minutes, and the total profit was almost 4%.
Also, I am still experimenting with chart colors to find out what works best. Many of you didn't like the previous colors, so now I am trying these. Both the 5 and 8EMA are the same color (blue) because I really don't care which is which. The 100EMA is black, and my Fibonacci lines are white. Let me know if this is easier to read.
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