In the last post, we reviewed the sweet spot signal setup in WYNN. We continue today’s post with a segment featuring a live observations a week later (1:53):
Key takeaways:
- If the daily downtrend prevails, prices would start lower from this point; this is the roadblock
- That makes this the hardest period to hold through
- Prices were up from $90 potential entry, past $95, up 5.55%.
- Reduce variance on the trade by taking some profit off the table
- Securing some profit allows you to manage the position with a looser leash e.g. using a break even stop, rolling from the 30 min to some longer time frame to manage the trade
From the setup:
To Stage 2: the first road block
So initially, the trade could have either gone up a bit, or down & stopped out. At stage 2, prices can do a few more things:
- Daily resistance holds, and the major direction of the stock reverses
- Prices react and put in a higher low (vs the previous low e.g. 86.34)
- Prices break through & continue up
The following posts will continue on with this example, through to stage 5 where we are now @the 2nd roadblock…
Also, with this series, we will be holding a 3-day sale for ‘back to school’, beginning August 17th. Summer is ending, which means the kids are headed back to school, and traders are also returning from vacation. That makes this the perfect time to get back into the swing of things before Q3 gets going. More details coming soon