Condition: 1. Downtrend line was broken by breakaway Gap (G0). Start a new trend. 2. 2/5/2010 Weekly demand zone confirmed 3. G1: runaway Gap shows 40-50% of the trend. 4. Fib 0.618 retracement, 5. Demand zone entry.
Entry in demand Zone: below 55 or buy at next Gap up open Stop: 50 Target1: 75; risk/reward=1:4 Target2: 95; risk/reward=1:8
Better to see following confirmations: 1. If SPY weekly Close above 260 in two next weeks, 2. If there is a Gap up (G2) break the down trend line.
This is a trading school homework. I need 6 months to practice trading plan. If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.
Trade active
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In my real trade, I bought Jun C75/90, limit 2.35; no stop.
Trade closed manually
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Closed limit 3.7. Made 50% profit in 5 days. This is a winner.