Hope everyone stayed clear of the chop this morning, or bought high sold low 😂
Just another example of the strategy I use, came into play very nicely today and was able to grab a nice winner around lunchtime.
Couple of things factored into this trade so I’ll go over those.
This was a hidden bearish divergence, meaning a continuation pattern, which in this case was bearish. Lower high on the chart with a higher high on the oscillator (TSI) at the bottom. That’s the first confirmation of price continuing down.
Also at the same time, you’ve got price unable to hold above VWAP and the 200ma, which are additional confirmations that price should turn back to the downside.
This type of trade allows you to identify risk very easily, and lets you give the trade room to breathe while also having plenty of room for a take profit below.
Hope this helps some of you, look up divergence patterns… I promise you it will help with your daily confidence and decision making.
Hope you guys kill it tomorrow! Happy Thursday!
