I thought today would be a good time to take another look at the RIMM trade that Joel set up on the Weekly chart a few days ago. The gap really got the ball rolling to the downside; now what can we do from the daily chart to take advantage of this?
The daily chart was setting up a beautiful Type I Trade, but with the gap, the Risk/Reward ratio is no longer as clean as we like. As always, change your perspective and new opportunities will be revealed. If we look at this chart from simply a Type I Trade point of view, it breaks the minimum RRR (Risk/Reward Ratio); however because we got our first red XTL bar, we can use the XTL Breakdown Trade to jump on this with good Risk/Reward. Be flexible and Trade Smart.
~Duane Gott
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