Saturday, October 14, 2006

Small but profitable Trade

No day trades in the early morning as I just watch the news and follow the NASD, and the S & P play catch up with the DOW. I was just going through some charts and I was keeping my eye on (LVLT). Around 11:25am this stock printed a NRB (Narrow Range Bar) after bottoming on it's support level of $5.00, and quickly bounced right up to $5.32 shortly thereafter. If you were actively watching this stock, as it is very liquid and trades on average around 30 million shares each day, you would have had 3 seperate but equal chances to buy the stock at an entry price of $5.00 per share, and ending the day on an exit near $5.25 - $5.32. Let's take a look at the entry, which tagged $5.00, three times on a 15 minute chart.

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