PAY gapped down and quickly fell through S2 (yellow horizontal line), and then consolidated for 5-6 bars. It printed a hanging-man candle below the consolidation level (white horizontal line); price did not break the hanging-man's low, but the next bar was a narrow-range, inside bar - I entered on a break of that bar's low.
Price collapsed over the next nine bars, and I sold on a break of the doji high. I left some money on the table as price rolled over and continued down - but I was happy with the quick, substantial profit.
6 comments:
Nice trade. Would you ever consider reentering when you saw it turn back down?
As a general rule I don't, but I am not opposed to it if the setup is compelling. Usually after I close a trade, I just move on to the next one.
I love this trade.
What broker do you use?
Victor, I use TerraNova Trading.
Tom C, looks like a very small opening gap but by first 30" it was down 4% does. Does it matter to you how much it gaps down/up.
nice trade... thing didnt bounce a lick off the opening range low.
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