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In today’s webinar we look at SHOP on the 2 minute chart. After spotting the wolf candle (large upper wick) we do a comparison for a bullish trade scenario and bearish trade scenario. The bearish side of the comparison wins so we plan a short trade. After determining our entry, stop and targets, we see the chart heads back to the upside. This is a shining example of the fact that there are no guarantees in the market. Logically, if anyone did get their entry they should have stopped out.
Clay talks about the possibility of this being a rubber band setup since it has gone in a single direction for so long so we continue to scroll the chart to see if we find another setup. Some students decide to try long setups while others go for short. We do see that the short trade is the one that ultimately pays off. Clay clarifies the difference between revenge trading and sticking around for a future setup.