Yesterday, we highlighted the five trades that are proven to work. (If you're trading something else, well, stop.) Today, the 6E presented one of them, the setup that Adam Grimes calls 'failure test' (aka upthrust or spring). (You can also watch the video.)
6E 2016 03 08
The events, as they unfold:
The breakout fails, we have a failure test setup. You can either, aggressively go short at (1), or wait for the first pullback one timeframe lower (5:1, in this case), and go short at (2). CoralFast is red at (2), which helps, as does the divergence on the BBMACD. Stop above (2), target (or partial target if you have a runner) is the previous low. So far so good.
(3) Remove half of your position. Your stop on the runner is below your entry, so your risk at this point is zero. Feels good.
(4) Price breaks support, next target is either the dark red line (yesterday's close) or (5). In either case, you follow with a trailing stop until your stop is hit.
Doing the above, or another one of the five setups, with the Remek! System is not rocket science. You only need three things: discipline, discipline, discipline.
You can also watch our video on this trade here.
And here's the big picture:
6E 2016 03 09
Mindful trading!