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Today we look at BABA on the 5 minute chart. We see that it has come into a clear area of resistance so this helps us decide where a logical location would be for a stop. Clay has a big conversation regarding rubber bands and different choices on how to trade them. After setting our stops over the recent resistance along with an entry just prior in terms of price, the price moves up to within a few cents of the high before collapsing multiple dollars. As always, there are multiple ways to manage your winner and in this case the previous highs method worked best. Just remember, that’s not always the case. It’s more important to stick with the one you feel the most comfortable with.