Today’s markets action provided some good opportunity during the morning trading, but as always you had to be ready and focus to take advantage. In has been tough trading from a market stand point as the indexes have not cultivated an environment of confidence in one direction intra-day.
Today I want to talk about long trade setup, that provide good risk/reward and show how developing trade ideas on the higher time frames and sticking with thoughts ideas will provide conviction and allow your p/l to light up green.
The trade is LVS, as we can see on the daily charts that the trade is undeniably a long, but prior to today’s price action over the past weeks the longs have been a tough trade(as we can see on the hourly chart). So being the best trader we can we had to be patient and let the price action establish itself to the long side before we could trade this stock with more confidence.
Well today we got the price action once we were able to breakout above 39.50, which was a strong resistance during previous weeks trading. We can see on the 15 min chart that once the price action was able to hold above the resistance and close above yesterdays high the stock exploded higher for about a one dollar profit.
