I thought this was an interesting trade posted by Fred in comments. His analysis is below, but if I can "Monday morning quarterback" for a minute (as I didn't personally trade this setup), I would like to offer the following observations:
1.) Even though Fred took profits at the halfway point between the high and the Fibonacci extension, it is interesting to note that the setup did eventually reach the FE, and would not have been stopped out (assuming the stop was the opposite extreme of the entry bar). I am not pointing this out to say Fred should have held - in fact, I think he did the right thing and took profits at a critical point once he saw weakness and resistance (see his analysis). I am only pointing it out because it is always interesting to see how these things play out.
2.) The high tails on the first and third bars made this a riskier setup than usual. It is fine to take a setup with more risk, as long as you acknowledge and plan for it. The tails are most likely the reason the setup took so long to unfold. For those of you guys who insist on looking at setups later in the day, QCOM presented a few opportunities to enter as it tested and successfully bounced off of the Fibonacci zone.
Took QCOM today, 5-minute chart. I think it was a perfect setup on a break of the 5th bar, which was rising off the 8EMA and bouncing off the 50%, not to mention offsetting bars. It didn't make it to the extension, but I took .40 out of it and was anticipating a possible reversal as resistance was at a whole number ($57), and it was the halfway point between the high and extension. The doji 10:15 bar confirmed, and I took profits. In retrospect it would have been a great short.
Thanks for pointing me in the right direction. I am consistently finding good setups and winners, or not trading.
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