Using my narrow range strategy on a trade with Apple resulted in a winning trade. See below for a screenshot of my entry along with profitable exit.
The green highlighted box was made pre market open. This was showing that price action towards the end of the prior day was chopping around in a narrow trading zone.
On market open a gapped up bullish elephant bar was printed on the 2 minute chart. In such scenarios I am required to enter a long trade when there is a gap up out of this range and place a stop below the open of the candle.
Price continued to the upside before pulling back. After pulling back and resuming it's move to the upside I started to feel fear that my profits would be evaporated and accordingly I exited the trade at a decent profit relative to the risk I took.
Just after I exited the chart shows serious volatility which was due to the announcement by the Fed of a 50 basis points cut. The price action chopped around both to the upside and downside. On reflection, looking where the price finished I probably was not far off an optimum profit on the trade. I ended up with the right result but I achieved it in the wrong way.
My winning trades today represented another step at taking proper entries for high probability set ups. However, my profit taking calmness and cool execution still needs a bit of work.
Trade Clearly!
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