BZH - 110805; 15-minute chart at 2005-11-12 19:43:03
1.) What did I see? A gap down and sideways action after the first two bars. The third-ninth bars form a narrow range pattern, and the ninth bar is narrow range, an inside bar, and "hammer-like" - closing near the top of the morning range. 2.) What is the entry? A break of the ninth bar high. 3.) What is the exit? The target was the 34MA (solid blue line). BZH made a textbook reversal when it touched the lower boundary of the retracement zone (see the 13th bar) of the previous day's high to the morning low. I closed the position on a break of that 13th bar low, anticipating further weakness. The target was not reached, but a good trade nonetheless.
