I tend to find one of these explosive movers every week, and while this was not what I would consider a "textbook" setup it was still a nice, low risk/high reward opportunity.
ATRN gapped up and printed a wide range first bar, but it did leave a long upper tail (bearish). Price pulled back over the next three bars but reversed and rallied sharply back through the retracement zone (RZ) and to the Fibonacci extension (FE). Price then pulled back to solid support from the opening range high (ORH) and a rising 8EMA. I entered on a break of the 15th bar's high (which closed back above the FE). I exited half my position at $6, and the other half on the pullback to $5.50.
There were some red flags, namely the long upper tail on the first bar and the ninth bar. But overall price was acting bullish and when it closed a second time above the FE (search this blog for "beyond the Fibonacci extension" setup), I had a feeling it was setting up for a nice move.
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