Symbol: STEC
Type: Short
Entry: The 10th bar, when the prices broke the 9th bar low
Exit: The 15th bar at the 119% Fib. Ext.
Result: Gained +1.93%
(STEC) gapped on opening, followed by a hammer-type 2nd candle with a long lower shadow. Based on the 2nd candle, I almost took this stock out of my watchlist, because I know I would not feel comfortable entering Short, when prices are still 'within the shadow.' But since my watchlist wasn't that long today, I left (STEC) there. The 5th bar broke away from the Opening Low, but closed with a small lower shadow. The 7th bar continued to produce a lower shadow, but it confirms the support when I drew a line across (see yellow line.)
This is when I set my entry to slightly below the yellow line, since I noticed that a sizable gain can still be achieved if prices only reached the 119% Fibonacci Extension.
The entry took place rather soon during the 10th bar, and my exit point was reached during the 15th bar. Everything just worked out as planned.
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