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).
Sunday, February 3, 2008
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).
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).
Subscribe to:
Post Comments (Atom)
3 comments:
Do you take into consideration the width of the gap when taking these wide-gap trades?
Thanks,
anarco
Not as much as I do the width of the first few bars. If the first bar is too wide range, I will pass.
Did you wait to see the price action around the extension, or just cover when it hit automatically?
Post a Comment