Having a Plan
I was asked before I think by masterplan what I meant when I said you should have a plan for your trade. This morning was a good example. At the outside bar I have marked I was considering a long trade to trade the breakout above the round number. Tess' post made sense to me and suggested an increased likelihood of continued ranging action so I ignored the breakout (and so did the professionals). The evening star occurring at the round number with OB and stochs falling provided the perfect set up for a short trade consistent with my overall view of the market (thanks Tess!). First proft target was at the last low marked with a green line (2:1 R). Looking to exit now on the next ib since we are developing further divergence. Current stop is above the last bear candle and the round number. Final target will be at 232.10 just above the very strong support. Interim exit would be the formation and break of an ib/ob against the position and given the divergence the trade needs a constant watch at this point
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