The loser. This was a "bread and butter" set-up similar to the many I have highlighted in the past month.
1.) What did I see? A gap down and rally into the retracement zone from the previous day's high to the opening range low. The fifth bar was narrow range and a weak candle. 2.) What is the entry? A break of the fifth bar low. 3.) What is the exit? The target was the morning low, which was not reached. SUPX started to fall but reversed and took out my stop (the high of the entry bar) two bars later.
Notes - in "second-guess" mode, the only negative about this trade was that it occurred 2.5 hours after the open. In my experience, the longer the set-up occurs after the open, the better the chance it could fail.
