A simple setup - ITMN

First, thank you to everyone for all of your support and comments - much appreciated!

In comments, Rory wrote the following:

"Nice! I assume the first chart is just showing the swing high. I notice you draw the white line through the close, not the high. Is that standard for you?

The second chart shows the Fib overlay. If you entered where the black arrow is, which is a nice narrow-range bar above the white line, then your target was probably the 138% extension. Nice percentage gainer. I am looking forward to more charts on this blog."

Rory was spot-on. To answer the question, when I am drawing my horizontal lines based on swing points, I draw them through the highest close, not the high itself (or lowest close, not the low itself).

The lines at the bottom - which really don't come into play on this chart - are pivot point lines (R2, R1, PP, S1, S2). The first chart shows a white horizontal line drawn through the first swing high. The second chart shows red Fibonacci lines plotted over the morning's low to high.

Once price took out the earlier swing high, I was looking for a set-up to enter. The bar I marked as my entry was narrow range (NR3), opened at its low and closed at its high (strong candle), and had support from a rising 5MA. I closed half my position at the Fibonacci extension (five bars after entry), and held the other half until the close.

PS - good quote (and good advice) from The T.A.D. Principle Blog this morning.