WFII - 110705; 15-minute chart at 2005-11-12 19:43:03
As I mentioned earlier, I only took one position today due to distractions. Looking back over my charts, this one jumped out. It was a beautiful set-up with a return of just under 13%.
"Hindsight analysis": 1.) What did I see? A gap down with the first six bars weak, but showing bullish signs as the range narrowed and price could not decisively break the morning low. Strength starts in bars seven and eight, with the eighth bar forming a nice narrow range hammer on the morning low. 2.) What is the entry? A break of the eighth bar high. 3.) What is the exit? The target was the retracement zone from the previous day's high to the morning low. The secondary target was the 34MA, which was hit later in the day (and, notice how it stops the rally).
