Today UAL created a great breakout opportunity if you were prepared for it. Looking how the trade sets up we can see the daily chart that order flow is clearly to the long side as price action is above all moving average. As we also can see price action forming a bull flag followed by melted candles (which indicates some momentum is coming in either direction, but because of the order flow to only look for longs). Because the melted candles made the risk point very tight the risk/reward for this trade was very attractive.
The open today also set up perfectly for the long idea. Gaping higher on the open followed by a sideways pause was good time to enter the long with a reasonable stop or waited for the 15 open range break to initiate the trade. Either way the price action produced good momentum outside the break, which coincided with the SPY breaking out of its 15 min open range.
So always be mindful of the significant intra-day market events to initiate your trade to dramatic increase your probability for follow through.
