It doesn't happen every day

But a few times a week, you can find these "no brainers".

Price gapped up, fell with the first few bars, and rallied back above the open (horizontal white line). The fifth bar was a narrow-range hammer that formed nicely on top of that level; I entered on a break of its high.




The next chart shows Fibonacci lines plotted from the opening range high to the previous day's low. Note how price reversed precisely at the Fibonacci extension.

WFR - 021508

WFR gapped down and after rallying back to the previous day's lowest close (white horizontal line), it stalled out and began printing narrow-range bars.



If you look at the second chart, you will see that the retracement zone from the previous day's high to the opening range low also corresponded with the level noted above (the previous day's lowest close) - so there were two levels of resistance.

The fourth bar was the narrowest of the morning, and an inside bar that printed just below the declining 5MA. I entered as the fifth bar took out the fourth bar's low. Price fell back to the morning low, and once it broke through that level it was a straight shot to the Fibonacci extension, where it reversed almost perfectly. I covered at that point for a nice gain.

Classic "X" trade...

I have not featured many - if any - classic Trader-X setups. Here is one - Fibonacci lines plotted from the previous day's low to the OR high. I bought on a break of the NR3 bar, which closed above the OR high and had support from a rising 5MA. I sold at the Fibonacci extension.

XLII

I am watching the Super Bowl pre-game coverage, and I am pretty sure I witnessed one of the signs of the Apocolypse:

"And now back to Ryan Seacrest on the red carpet."

WTF? It is the Super Bowl, not the Academy Awards. Am I the only one that thinks this is ridiculous?

PS - I stumbled across this and thought it was worth sharing:
"12 Things I Learned By 42 That I Wish I Knew At 22"

AVID - 020108

AVID gapped down, and I plotted the white horizontal line through the open. Price bounced around that area until the sixth bar broke through decisively. The seventh bar rallied, but closed below the open. The eighth bar printed a narrow-range, inside bar. I entered on a break of the eighth bar low.

For my exit, I plotted Fibonacci lines from the previous day's high to the opening range (OR) low. I covered when price hit the Fibonacci extension (as X always pointed out - note how it reversed shortly thereafter and rallied off that level).