Strategy Description: Looking to join a downtrend which is confirmed by breakdown, but don't want to chase it down and want to improve the RR dramatically.
Note that this can breach the level, and get rejected from it which makes it a little more complicated, but a good judgement can be made by how far it's already moved and how far you would expect a retracement and trend to remain in tact.
There should be a strong initial move below the level to confirm the break and then offer up into the level, getting really big where the RR is the greatest. If it successfully holds above the level need to get out.
Technical Analysis: $82.80 was the all-time low, and BABA gapped down to it, before driving lower. This is a good sign of strength of the trend. Never held above vwap until it bottomed at $80.00 that day, although there was the breach at around 10:20 but that could have been a good chance to get back in some of the managed position.
No comments:
Post a Comment