Entry time: 14.11 EDT.
Exit time: 15.15 EDT.
Entry price: $24.85.
Exit price: $25.28.
Strategy: Reversal long.
Net profit: 39.50 cents/share.
Criteria for taking the trade:
1. The market is in uptrend (SPY daily chart below).
2. This particular day SPY began with a gap up and the sentiment was generally bullish (SPY 5 minutes chart below), due to the announcement of potential action from ECB in order to keep the Eurozone in one piece. This is a good day for reversals on stocks that are visiting for the first or second time an intraday support.
3. TREX has visited a strong support at the 5 minutes chart and it is a little below it.
4. At the 1 minute chart a small breakout pattern is formed (below). We can enter with a very small stop of 6 cents (at $24.79). The first target is at almost $25.60. We exited due to the stop being hit.
En
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