Minggu, 30 Oktober 2011

Gap Momentum with NR7 - FEIC

High volume gapping stocks offer good trading opps if you can sit on your hands until a good setup presents itself.

There were two trading opps for FEIC on Friday.

  1. Fib retracement long - red fib lines where you should target the 23.6% FE. I missed it. After coming within 10 cents of the FE, price consolidated in an increasingly narrow range, which we identify as coiling ahead of the next leg up.
  2. Within the coil, we spot the NR7 bar and place a long entry, using a few cents below the low of the NR7 as the stop.
Related post - NR7

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