16 Feb 06: STRA Dummy Spot

A nice dummy spot example from today (these are 10min bars):

STRA chart

A gap up, a little noodling, a pause. Note the low volume on the poor little 10:00 inside bar (aka Dummy Spot).

A trade on the break of that bar’s top with its bottom as the stop would be a dream trade: A 50-75 cent risk would have resulted in a 6 to 10 DOLLAR reward, depending on how you manage your stops. Let’s see, that means risking $100-150 would have gained $1200-2000. Wish they were always this pretty…

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