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Today we form a trade plan on SPY on the 5 minute chart. After polling the room for what their alert would be we see the general consensus is that a large wolf candle forms and is worth alerting. Depending on the type of entries people want to use (speculation, breakdown, pullback), we scroll the chart and see that the chart immediately breaks down quite fast. It rubber bands down to the 50 sma and we discuss if we take off our entire position or mitigate since it is a logical bounce spot. We need to remain calm and unemotional and follow our plan to trail our winner. Not only does it crash through the 50 sma, it tags the 200 sma before ultimately bouncing and stopping out everyone who trailed their winner logically.

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