We talked about "quality of the pullback" last week. COG rallied from the open. The rally was three bars, and the pullback to the 50% retracement was three bars. It was what I call "orderly" - lower highs and lower lows, and the seventh bar offset the sixth and created the trigger for a nice setup. It also had support from a rising 8EMA. Entry was a break of the seventh bar high, exit was the Fibonacci extension. Notice how price never broke below the 8EMA before reaching the target.
I am getting ready for a multi-week vacation. I have made arrangements with my nephew (aka, the blog administrator) and Tom C. to make a post now and then so reader's can post comments if they want. Hopefully I will have another post or two before I depart!
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