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In today’s episode we start off the conversation talking about the hammer candle (or any candle with a large wick) and how to properly establish a good stop loss level. You’ll need to use some previous candles support or resistance.
Clay alerts STJ elusive wolf. Many people throw this term around but don’t actually know what it is so we take the time to explain it today. We see that it is extremely beat up and then takes a huge bounce to a moving average which then turns into the elusive wolf. After discussing proper RvR technique (of setting our target, stops, and trailing stop) we let the chart unfold and see the ticker collapse. This is a great example of a rubber band that snapped right back to our moving average and provided a great risk vs reward opportunity.