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.
2 comments:
Tom,
Clean and clear, nice set up and trade. Like vclm ocr brs...well sort of. Out of the gate and into the green. Ueic one of your reversals. You don't wait 45" into the open to makes trades necessarily? Somtimes they're over by then and that might be really true in a bearish mkt, like now.
BL
Nice trade Tom. I actually saw this on Thursday but didn't pull the trigger.
I like the blog, but you need to post more!
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