How I set the bias
WMT 0.00%↑ was gapping up to all-time highs after earnings. That is obviously a stock to watch for the day and look for a long setup. As seen on the screenshot, I took the ABCD pattern on it first, which never gave me 2R target, so I bailed on it but still it held above the opening price, so I kept watching it.
On the 5-min chart, it formed a bullish pennant pattern.
Entry rules
I like this pattern with a shake-out, so I waited for the fake failure of the pattern using the overlap method, I entered after the 1st min of the 5-min cycle the red candle was about to be engulfed by the next candle, creating a fake lower low.
I took the entry at the 179.30 area which was also the pre-market high, a possible bouncing point supporting the trade idea. I put the stop to 178.86 which is below the previous pivot point and also below VWAP and below 179 as the natural support as a whole number.
Trade management
As this setup has an entry before it actually breaks the traded pattern, It allows me to target 3R over the usual 2R. My hotkeys are set for one click entry with automatic stop loss and profit target range order. Fire and forget mode. It reached my target and turned around. I did not expect that as I believed the trade has potential to go for break of high of the day still, but my 3R target comes from my stats so that is what I wanted and that is also what I got.
Another example of the same setup I took on BABA 0.00%↑ on September 1st 2023