Wow! What a crazy night of price action during and following the US presidential election. I just talked about being prepared for flash crashes and this was a perfect opportunity to take advantage of a small one.
In this video, I'll go over the backstory on the trade, my reason for getting into the trade and the results.
If you prefer the text version, it is provided below the video.
I believe in Incremental Automation, or automating as many of my trading process as makes sense to me. You don't have to automate everything, but it can make your life a lot simpler.
Here is an example of some Outside Bar alerts that I got on my phone recently.
After I get an alert, it is time to check the backstory. In this case, the current market mood appeared to be down. This is what I saw on the weekly chart.
However, it was getting to the bottom of that wedge formation, so I knew that I had to be careful. Therefore, I had to set a conservative profit target.
This is what the entry looked like on the daily chart, which was my primary reference chart. You can see the nice Outside Bar formation on the chart, in an area that could be using former support as resistance.
On this trade, I entered using the 80/20 entry. If you don't know what that is, read this post.
It's a good thing that I used it…as you will see in a minute. I have found that using this entry is a good balance of getting a high degree of winners and still leaving the door open to take advantage of extended trends.
Once my trade was up 100 pips, I moved the stop to +5 pips, to guard against any My first profit target was hit within 3 days. Then when the election started, price snapped back violently and took out my second position.
So the final result was that I walked away with about 1.5R on this trade. Not a bad deal for such a volatile market.
On to the next trade!
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