Wednesday, February 1, 2012

01022012























1.Market gaps down slightly and remains within the range of the previous day.Down move stopped after a small hammer and retest of the low.
2.For the next three hours market traded within a range. Once the breakout to the downside failed, it broke the opposite side of the range and rallied.
3.Rally gave a very handsome return to the patient trader.

Lesson: If the breakout of a tight trading range fails market will successfully break the other extreme of the range

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