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