WYCKOFF LONG ON HDS

This is another trade on the same idea as Royal Bank of Canada. Only this is an example of a 2nd tier entry since the retracement is to the 0.618 level. On this entry we are once again 1 day too late, only on this one we need price to retrace to at least $28.53 to achieve a R:R of 1:2, which is my bare minimum R:R. Initial stop remains the swing low and target is the last major swing high. Ultimately what we trying to do with this setup is to catch a bear trap in action, which then runs the stops of the bears and adds to the momentum for the longs, which allows this type of trade to achieve its target in a relatively short period of time, but because of this we need to be quick to accept our losses. Good Trading.