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Long Set-up in Hassenfeld Brothers

Added on by C. Maoxian.

HAS first lit up the scanner as it 1) gapped up pre-open (on earnings), 2) made a new yearly high at the open, and 3) became unusually active at the open, then at 9:34 AM, and finally at 10:55 AM.  This means I put it on my "idiot wave" watch list, and open the 1-minute, 3-minute, 5-minute, and 15-minute charts on one screen to look for low risk set-ups. 

The unusual activity into 10:55 AM was actually a dip which formed a zig zag on the 3-minute which was playable. A masterful (i.e., lucky) entry could have been $93.75 off of the 1-minute chart, but more realistically entry off of the 3-minute would have been $94.14 with the same stop (below $93.30). Target was $96 and high change so the initial risk/reward was acceptable (not great, just ok, gets the green light).

Now this trade didn't work in the end, it was a scratch, no harm, no foul ... but the important thing is the thinking was good, and from the masterful entry you could take something off and carry the rest into the close with a breakeven stop, something like that. I've been out of the game for long enough to be rusty, but I'm just sharing my thoughts, and am happy to hear yours. 

Click to enlarge