This trade originated with the setup described in the previous post:
As expected, our additional requirements made the entry slightly worse, but not by very much. In the end, it didn’t matter, as the trade stopped out, as will be seen below.
The first long triggered (for us) at the top of the small spinning top doji. It lingered for a day, and then took out the stop in today’s opening session. Intriguingly, price then eked out a new pin bar, reaffirming its bullishness. The question is, do we try again?
We have specific rules in our strategy that allow us up to two trades per support zone. Any more than that would risk a war of attrition, should price enter a whipsawing period. Although not every Box that we publish will permit this second entry, this one does, and thus there will be a second try to go long on this Box should price break above the 1778 trigger line.
It is worth noting that in general the FKLI outlook is currently very mixed, and this cannot be considered one of the higher probability scenarios.
Head Trader Consultant