FractalFreakHowever, at best, this is a “low bias day chart trade”.
Pros:
– cheap entry on day chart, price came up over weeks
– “V pattern” on day chart (left high has been cleared)
– DC MA has been cleared
– longies just above price
– at least some longies (but LOW flow)
– some MA targets below
Cons:
– CARDINAL sin: trading into the wrong side of a squeeze (albeit squeeze is small)
– collapsing green squeeze line
– NO stops nearby (!)
Sumamry:
As a beginner, you should not take the trade. An advanced MK trader may take the short trade on the day chart, but will ensure a good risk-reward, meaning that she will try to ride the trade to the dark blue MA for example.
Own stop should have similar distance, i.e. above the longies nest + buffer.
NOTE: In such a scenario, one has to EXIT as soon as some shorties enter the market, because these could put the market into a proper squeeze! If longies come in, ride, if shorties come, throw away trade. Needs to be monitored.
