NFP gapped down on 6th Feb 2008.
The first candle was red hammer. Then basically it didn't do much and just went sideways. But note the 8th candle. It opened above the decade $30.00 level and closed below it. It also bounced off the ema above and also it closed at its lows (at $29.90). Taking all this into account, I am now interested in this stock as a possible short. The next few candles trend down with the ema. The 11th candle is red hammer like with its wick bouncing off the ema. This is my trigger candle. Now you will realise that I am taking an entry inside the OR, this is fine but you need to be aware of the higher risk of these type of trades. The previous trend down with the ema and the rejection of the $30 level made it a risk worth taking in my view.
In any case I watched it closely for any bullish behaviour over the next few candles. Then the 15th bar falls thru the OR low adding to our confidence in this trade.
Entry: 29.40, Stop:29.80
Fib Ext : 25.71
1R= 29.00, 2R= 28.60, 3R= 28.20
I took partial profits at 2R, then left rest to run with stop at 1R. It didn't really move much from there and I just closed at end of day at $28.10