THC - 110705; 15-minute chart at 2005-11-12 19:43:03
1.) What did I see? A gap down and rally into resistance from the retracement zone of the previous day's high to the opening range low. There is a nice "rollover" in bars two-five. The fifth bar makes a strong move back down, and the sixth bar is narrow range. 2.) What is the entry? A break of the sixth bar low. 3.) What is the exit? The target was the morning low - it was not reached, and the position was closed at the end of the day. Even though the target was not reached, the trade still netted ~3.5%.
Notes - the stop was .05 from the entry, allowing a nice size position. That is the advantage of entering on a narrow range bar.
