Home > Uncategorized > UAL Breakout

UAL Breakout

Today UAL created a great breakout opportunity if you were prepared for it. Looking how the trade sets up we can see the daily chart that order flow is clearly to the long side as price action is above all moving average. As we also can see price action forming a bull flag followed by melted candles (which indicates some momentum is coming in either direction, but because of the order flow to only look for longs). Because the melted candles made the risk point very tight the risk/reward for this trade was very attractive.

The open today also set up perfectly for the long idea. Gaping higher on the open followed by a sideways pause was good time to enter the long with a reasonable stop or waited for the 15 open range break to initiate the trade. Either way the price action produced good momentum outside the break, which coincided with the SPY breaking out of its 15 min open range.

So always be mindful of the significant intra-day market events to initiate your trade to dramatic increase your probability for follow through.

Advertisements
Categories: Uncategorized
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: