Entry: 30 minute low 121.52
Stop: High of the day 121.97
Exit: My goal was yesterdays Low (red line) 121.02
Along with gaping stocks I monitor a handful of EFT's 6 high volume stocks. In my stock business plan I describe 3 basic setups and the 30 minute breakout/breakdown is one of them.
Here TLT is in a down trend and gaped up to form a red candle off resistance during the first 30 minutes of trading. Always trade with the odds in your favor - trade with the trend. Its why i always consult with the prior days action and the stocks daily chart.
* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money. Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.