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We take a look at TSRO on the 5 minute. We see it creates a nice wolf candle in a great location (the 50 sma). We see that we have a nice bearish trend, a bearish candle, rejected at a moving average, rejected at a grandma number (whole number) and has gapped down. After setting up our trade plan to the short side, we see that it nullifies our idea right away but it is time to see what would happen if we weren’t disciplined and took the loss. There was no reason not to get out in the 77s and it roared to 84 which would have caused a MASSIVE loss if you did not honor your stop.
Clay then does top down analysis on FB starting with the daily. We identify a potential reverse head and shoulders. We also see some power lines (moving averages) creating resistance on the 5 minute.