How I set the bias
Tee stock was gapping down slightly below a previous reverse hammer, below 200 SMA on 60-min chart. I was therefore watching the stock for a possible short setup.
The pattern evolved after 9:45 when I used the overlap method to be able to enter sooner than the actual break of low of the day, thus allowing me to target 3R instead of 2R for this setup.
Entry rules
Aggressive entry
The pattern evolved after 9:45 when I used the overlap method to be able to enter sooner than the actual break of low of the day, thus allowing me to target 3R instead of 2R for this setup.
Classic entry
is more simple - just wait for the break of the low of the day point. The same stop, 2R target.
Trade management
My 3R target was 10.94, and I saw the huge over 1 million shares order at 11 while my 2R was at 11.08, so I knew I would be either 2R or 3R for the result. The price went down the whole day down to 10.55 - a 6R move for a whole day hold.