A short trading setup that exploits price wicks and failed breakdowns. Enter near a reclaimed level with your stop below the wick low, targeting the recent high for a 40-point gain while risking 15 points. Look for squeeze, low-volume nodes, and cluster formations to confirm.
This is an A+ setup. So when I see something like this, I want to put a sell stop right here to go aggressive because this can actually liquidate down. What I was looking for is price to come down and really lack follow-through on the downside and come back in the range. So I wanted to see it come down and come reclaim that zone. We broke under, we created the wick. This is a lack of follow-through to me. Yeah, we broke under, so more selling came in, but price is not going down. So some new buying came in. This is where I would enter. I would put a stop just below this wick low. So I'm just targeting that high. I would sell at the high and I would trail it. Get in here, look at the squeeze, look in the low volume node, look at the cluster built out. Out at the highs, 40 points, risking 15 overnight.
