This Is One Way To Use The Previous Day’s Closing Price In Your Trading

When a stock gaps up
above the upper Bollinger Band, be careful.
It is simply not possible
to sustain such unusual strength.

10:15:01 (from TradersWire)




Action

Symbol

Order Type

Setup

Stop

 Target

Current Price

Posted By

Buy

X buy stop at 46.82
Long Gap Pullback
46.67 47.15 46.67

TK

As we suspected, X immediately began to sell off.
When this happens, pay attention to the previous day’s closing price. Look at
the 5-minute chart below. Shortly after 10:00 AM, X almost touched yesterday’s
close. Notice it also formed an inside bar. This was a potential reversal
situation. In addition to that, this inside bar was shaped right at the 61.8%
Fibonacci level. I placed a buy stop at 46.82.

10:19:11 (from TradersWire)

Follow up on X

It has hit our target. Sell half and move stop to breakeven.

   

If you have questions, feel free to
mail
them to me.