Oct 28, 2007

Hindsight trade - LAVA

While LAVA was on my watchlist, I believe I didn't trade it because I had the intraday fib. lines drawn and it was basing below the 50% level. However, when I drew the fib. lines from Thursday's low to Friday's ORH, you'll see price was actually basing at the 38% level. A perfect, low-risk entry presented itself at the 12pm bar on rising volume (a breakout signal). A .06 risk would've easily netted a .49 return if you exited at the ORH.

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