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Today we look at AAOI on the 2 minute chart. Clay alerted the increased volume. The purpose of a volume alert is to get eyes on and from there, you are free to determine a trade plan that you see fit. For this example, we decide to set up a long sided trade plan. We are looking for a panic buy which is covered in the RvR Trading course. We want to take advantage of old resistance turns into new support. Clay brings up a good point about how we want a sharp pullback to enter ideally instead of it pulling back and consolidating. At that point, it becomes a cliff. We have a good discussion regarding how to you may choose to trail your winners. Some people keep them tight and others give them more room.

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