UPS gaps down today into the daily unfilled gap and major demand. This kind of gaps are one of the best type of gaps to trade as this very often invite retall traders to add to the initial direction from the gap and is selling into objective high risk demand levels where price action has earlier shown an unbalance in supply and demand. This is a typical mean reversion setup with extensive stretch in price that is not sustainable without a frequent mean reversion movement.
To get better RR I waited for the break for the consolidation on lower timeframe (10 min) that at the same time was an confirmation of that we possibly will see further strength towards filling the gap from today.
Risk is off at RR 1:1 and risk free trading towards possible continuation and further strenght tomorrow.
To get better RR I waited for the break for the consolidation on lower timeframe (10 min) that at the same time was an confirmation of that we possibly will see further strength towards filling the gap from today.
Risk is off at RR 1:1 and risk free trading towards possible continuation and further strenght tomorrow.