This is one I've been watching for several months or through 2022 .
I wanted to wait for a break abouve current all time high but I saw some things that I really like that justified the trade so I took it 2 min prior to close .
First of all LMT is a stock that has shown strength vs general market through 2022 which is the kind of stuff I want to be buying .
Todays price action is nice , I marked what I really like on the chart . I see volume is kind of low but we are in a range .
I have set a 1.5R derisk target near ATH which I think is reasonable . I will sell half there if sucessful and tighten stop to half , or 0.5 R initial risk .
Some points :
1) Low volume down at support , could be higher ..
2) Hammer from a few days ago .
3) Today is a bullish engulfing , that creates a higher high and eclipses 4 near-term candles to the left and was not sold at close .
4) We are in a daily range but it is a trending range since it has a major higher low mind you it also has a LH with lots of wicks so still
confusion there ... trading range price action rules BLSH ( buy
bottom 1/3 of range and sell top 1/3 ) which is basically what we are doing here only maybe buying a bit higher than we should
be, but that being said we still have a 1.5 R derisk to top of range , so reasonable .
Price action was the main justification for entry here hoping to see trend from open tomorrow / strong bulls / continuation..
I wanted to wait for a break abouve current all time high but I saw some things that I really like that justified the trade so I took it 2 min prior to close .
First of all LMT is a stock that has shown strength vs general market through 2022 which is the kind of stuff I want to be buying .
Todays price action is nice , I marked what I really like on the chart . I see volume is kind of low but we are in a range .
I have set a 1.5R derisk target near ATH which I think is reasonable . I will sell half there if sucessful and tighten stop to half , or 0.5 R initial risk .
Some points :
1) Low volume down at support , could be higher ..
2) Hammer from a few days ago .
3) Today is a bullish engulfing , that creates a higher high and eclipses 4 near-term candles to the left and was not sold at close .
4) We are in a daily range but it is a trending range since it has a major higher low mind you it also has a LH with lots of wicks so still
confusion there ... trading range price action rules BLSH ( buy
bottom 1/3 of range and sell top 1/3 ) which is basically what we are doing here only maybe buying a bit higher than we should
be, but that being said we still have a 1.5 R derisk to top of range , so reasonable .
Price action was the main justification for entry here hoping to see trend from open tomorrow / strong bulls / continuation..
Trade closed: stop reached
艾力克~
