A trader shows how to profit from a trade that initially moved against him. He caught a reversal with a bullish cluster and wide stop, exited at 1.7R profit when trailed out, and explains why even A+ setups don't always hit full targets.
there's a huge big trade that happened right here. We opened here, we had this huge move down, we opened straight up, and then look at this cluster we're building out. When I see a cluster like this and we get a wick up like that with positive delta, and we also have an area of pre-market where there was strong absorption, there's a lot of buyers trapped in that wick. You see how price is going up but they're keeping them trapped, and then what happens? They get stopped out. I traded these highs right here and my stop was up here, wider stop, but I was looking for a full retracement down to value area. I didn't get full TP, I got trailed out on this. I still ended up making, I think, 1.7R. So I got my first TP, which is right in this value, the value area was around there when I was looking at it here, and I was looking for a bigger move to close because I'm like, oh my God, we had this activity, clear support that turned into resistance, and we're seeing more sellers coming in. I would consider this an A+ setup. But as I mentioned in the pod, sometimes your A+ setup, you won't get your full TP, and that's okay. As long as you execute right, your playbook and your plan, I think that's a win.
