Why The Second Entry Is Sometimes The Best
You want to start a
trading day with a win. You don’t need to hit a homerun, but a
winning trade can help you to build your confidence and put you into the proper
trading rhythm. Unfortunately, sometimes traders have to begin a day with a
loss. Don’t be discouraged! Sometimes the second opportunity is better than the
first one.
10:27:15
Intraday Setup Alert
Helped by the strong retail sector, Wal-Mart (WMT) is making a bull flag
pattern just above the 8-period EMA on the 5-minute chart. WAT is trading at
53.50, up 0.85.
As you can see on the chart below, some traders had to get out the long position
when the stock violated its minor swing low.
Let’s study how Wal-Mart traded after taking a small loss. If you apply Fib
grids from the opening low to the intraday high, you will notice there is the
50% retracement level just above the 20-period EMA. Yes, that was the exact
point the issue reversed the downward movement.
Don’t give up too soon! There is always another entry chance.
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