A trader enters a buy-stop above resistance with a $600 stop-loss, risking for a $3,000 to $4,000 gain. He loads multiple positions as buyers and sellers reload at the level, watching for a breakout and planning to trail the stop if it works.
Now, a play that I can make, it's a buy stop above the area with a stop loss below. We load here, another one we load here, and another one we load here. We cover ourselves below the big aggression. This one is the anticipation of the squeeze. So is the momentum move. If we have a breakout, one candle and I'm risk-free. If we have a failed auction, now either they fail the top and I'm out risk-free with risk-free, or I take all the squeeze on the way up. Speed of tape loading. So I have the confirmation, aggressive sellers entering, buyers reloading at the level. I didn't load enough size because we didn't address retracement, but it's still crazy risk to reward. Taking out the position. The point is that we broke the cage, right? So it's really possible that we have a continuation. So I will trail my stop loss because this one can get to a $3,000, $4,000 position. You will, yes, let it run. And now the sellers needs to close. Okay, it's already 1:5. I will take the top of the squeeze and take it out. We risk $600 to make $3,000.
