Here’s Why You Should Pay Attention To Inside Bars
McDonald’s (MCD) gapped
up at the open after announcing it expects higher first quarter
profit. Look at the daily chart below. The stock opened just below the 38.2%
retracement level and sold off.
09:50:54 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
MCD | buy stop at 31.42 | pullback | 31.27 | 31.60 | 31.38 |
TK |
Now, let’s see the 5-minute chart.
After pulling back from the opening high, the stock formed two consecutive
inside bars just above the 38.2% retracement level (yesterday’s low – today’s
high). An inside bar often warns us of an imminent directional change. I placed
a stop order to buy at 31.42.
10:06:06 (from TradersWire)
Follow up on MCD
Sell half to take a 14-cent gain. Move stop to breakeven.
(Charts courtesy of QCharts)
If you have questions, feel free to
mail them to me.
T.Kamada
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