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Today we start off today’s webinars talking about the importance of what time of the day it is and how it can impact how beautiful a setup may appear. If you know it’s ‘rush hour’ in the beginning of the market, it is a fair assumption to assume that follow through is more likely. If the same setup occurs during low volume lunch time, it shouldn’t be surprising that it doesn’t follow through.
We take a look at VRX on the 2 minute time frame and determine what a logical trade plan would be. Clay discusses how the context of the overall chart can dictate why a normally attractive setup will not work if you are ignoring various aspects of the chart. Entrances can lose their attractiveness. After setting up a trade plan to the short side we remind everyone that we can NOT change our stop loss or target to illogical locations but we CAN change our entrance to maintain a good RvR. Per usual, we have our debate of when to take of our shares or contracts off and this example once again shows that trailing our winners is the only real way to stay open to home runs when they present themselves.