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Today we take a look at XON on the 5 minute. We see that a little after the open we gap down and form a bear flag. After the next 2 candles unfold we see that it breaks down (although quite a bit stretched outside the bollinger bands). We then look at the good and the bad of trying to form a long trade plan in this context. After this talk we form our trade plan and criteria while adhering to good risk vs reward. As you can see, within 15 minutes we’ve locked in a great gain even in the face of a wolf candle. Those folks who trade from feel rather than plan would have gotten out for a small gain instead of letting the trade run to its logical conclusion. Then we talk about how to trail our winner to extract the maximum profit. While at the start of this trade we had known that we were fighting the predominant trend, if you set your risk low enough you can achieve great results on a trade like this.