What is important to know about this trade is that because of the strong trend trade comes from minor resistance, that will setup an exhaustion trade. Statistically less than 15% will make it any further than the blue counter trend support level, why is why the exhaustion trade works so well. Additionally the exhaustion trade commonly marks a market top or bottom, as it did in this example. That gives you two trades that made 7 points, and had no adverse excursion. |