Posted by Tom C.:
Here is something a little different. This was a gap down, but it rallied to take out the opening range high (ORH). When I see this, I keep an eye out for a pullback from the new trend (new trend is up, whereas the initial trend was down (gap down, decline)). At 10:10 the new high was made, and the pullback started. It fell through the retracement zone (rz), but quickly rallied and moved back above it. There was a nice pattern with support from the rising 5EMA, and I entered on a break of the 11:25 bar. My target was the Fibonacci extension (which corresponded nicely with the $26 level and a declining 100EMA), and it was hit three bars later.
Price chopped around at that resistance and then presented an opportunity for a "beyond the Fibonacci extension" setup. I didn't take it, as it was lower probability moving into the previous day's range (it worked nicely, though).
Trading 27-April-2016 (+ $66)
22 hours ago