To make $$$ trading my work you need at least two things. First you need a trade setup, and then you need a trigger that tells you that it is worth placing a bet against the setup zone. Here is an example of a trade setup in $CMG. I’m looking to see if this support illustrated on the 78-minute chart holds (which so far it is). Then I’m going down to a 15-minute chart to see if it triggers a buy entry for a swing trade entry….OR I could use a 3 – 5 minute chart for a day trade trigger.
For more information about exactly what a trigger is, please refer to my guidelines HERE
Now if this setup does trigger an entry, my risk can be defined either below the low made prior to the trigger OR below the low end of the cluster zone which is below the 430.55 area. The potential upside target if this zone holds is currently around the 497 area. We know we are wrong the setup if the zone is violated by a couple of bucks!!