The morning started off with price in a bull flag and the opening price action took us out of the flag. We don’t trade the first minute even when moves like we saw today can happen.
After the breakout, price does what it often does when breaking out of a flag/channel….it pulls back and attempts the other side. When price runs into bulls supporting price and turns red-green, I got ready to front run a long once price breached the open of the previous bear candle.
Price hit first target and kept punching north and once a green candle started to turn bearish, I tightened the stop to the close of the previous candle (opens/closes can often offer support/resistance).
After the run up and a clear reversal, a short was taken and my first thought was to use the previous candle open as target.
Price had different ideas and barely moved 5 points in my direction. Trade management got sloppy and reactive mainly due bears giving control back to the bulls faster than I anticipated.
In pure Dowscalper terms…..
The first trade would have been taken when price breached the close of the momentum bull candle. I front ran the trade but DS traders would have waited and still quickly banked the standard targets.
The reversal would have been trade managed or the targets taught in the course would have been used.