Kardex Trader breaks down a daily chart setup where the high sits at the 50% mark of the day's range. The choice is between a high-risk reversal trade below the day's low or waiting for price manipulation at a key time to catch a small, low-risk move with precise entry and tight risk management.
Let's just say the daily chart looks like this, and then this is the daily open that we're currently in. I want to see price trade into this high, which roughly is around 50% of the range. So all I'm looking for is I'm either looking for price to trade below this low, and I can look to trade at some sort of reversal— much more risky trade because it's fighting the overall trend— or I wait for price to manipulate at a significant time point, and then I'm trading from here to here. It's just this tiny little move that I want.
