It's all about the set up…in Friday's session there were a number of solid opportunities that came up. The main one was $DIDI I was walking the team through my trade idea and how to play it. $DIDI isn't a flow float…the float is actually pretty high compared to what I like setting in the range of 130m plus, with that said the opportunity that came up was pretty solid.
As I have mentioned in past blogs and video lessons
it's all about the volatility and the patterns that follow.
I will generally approach set ups on market movers the same. Whether it's a low float or a large cap it's the same. I like to wait on the opening range to print or I'll wait 15-20 minutes on a larger pattern to print. Based on my decision to trade an opening range or a larger pattern will dictate how I play the situation…an opening range trade will be a shorter scalp while a larger pattern will be more momentum based. In both cases I look to target out at
key Fib.Pro levels or prior levels of resistance.
One of the keys to successful trading is knowing BEFOREHAND where you're getting out…knowing where to get out is just as important as knowing where to get in and where to place your stops. You MUST know all aspects of your trade before you hit the "buy button".
Anyways…back to the setup, as you'll see below I showed the team what I was about to trade. There was a classic flag (larger) with a key reversal zone that I wanted to trade out of if it broke long.