This is one of my strategies that I play and is called a fade play. THe gap was too much wide and the stock had over reacted and fell too big. The only way from here was to go up and that is what I played.
The trade payed off awesome. Call was to go long after 9:35 am above the 1st bar and then added to the position quickly when it was working in my favor. I exited to protect the whole number. This payed off handsomely with 3R in profits ( If your R (Risk) is $100 per trade, then 5R means you made $500 on that trade; (0.5)R means you lost $50 on the trade; 3.5R means you made $350 on that trade and so on...)
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This play was called as it was being formed, if you want a real time update and see on when I enter my position, add to my position and exit, manage risk and my stops, you can join my trading room -http://agaptrader.com/Trading_Room_2.html
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