A prop trader breaks down his intraday short setup: wait for the Asian range low to hold while price breaks the previous day's high, then short the fair value gap. He enters expecting it to close the same day and often exits based on time rather than technical levels.
Let's say if I have a bearish bias, I'm looking for a scenario where the Asian range hasn't been taken out yet and we're taking out that previous day's high. Now, let's say if you were, if you missed the short initially, there was an opportunity where we had this bearishervalue gap. And this is all occurring without taking that Asian range low. Yet, even if you didn't short it right at the previous day's high, this all of a sudden becomes a turtle soup scenario. If, let's say, if you miss that now, this becomes an area where you can short that fair value gap and then you're just expecting it to close on the day. And now you guys can see here, down here, it's 12:15. That's really where the intraday low get printed. And if you're not exiting at that specific low, you have to sustain all of this run higher. We're taking out Asian range lows. Yes, we have deviations down here, but there's nothing down here that would initially tell me exit the trade. Right. It's really just based off of time.
