"I've been trying the two minute charts (I've been trading for about 8 years now, so I know what I'm getting into), and I am using your parameters. Fibonacci lines from the previous day's close to the current day's open, and a 5EMA. I traded BSFT today, and made an entry on a break of the 4th bar's high after price pulled back to re-test the current day's open. I had a running stop-loss (mental) of a break of the 5EMA, which didn't happen. I actually added to my position on a break of the 20th bar's high. I closed the total position when price finally broke the 5EMA, at $46.74. Price rallied past my exit but I was happy to get around 9 and 3% on both positions. Thanks!
Here is Brian's chart with his two entries and exit (black dashed line) marked:
Building on last week's post, here is another example of the simple setup discussed. AHD gapped up and the first two bars were strong. It topped out and made an orderly pullback with bars 3-8. If you plot your Fibonacci lines over the morning's low/high (the first two bars), the pullback did not close below the 50% level of the morning's range. The eighth bar was a green body, closed back above the retracement zone (RZ), and had support from a rising EMA. The entry was a break of the eighth bar's high, and exit was the Fibonacci extension. The trade provided over 4% profit in under an hour.
Note the new color scheme...I think I like this one best, as using white for the 5 and 8 EMAs makes them easier to see on the browser. Let me know what you think based on the different ones I have posted.
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