Channel + Doji + Exhaustion Gap
Updated
Entered MRK with Feb17 60 Calls. Buy Low sell high. Playing what looks to be an exhaustion gap doji at the bottom of a channel
Trigger: 1.30
Stop: .85
Target: 2.92
R:R: 3:1
I expect a bounce or a gap up in next couple days. If it does not come I will look to exit aggressively because these setups usually work fast if identified correctly.
Trigger: 1.30
Stop: .85
Target: 2.92
R:R: 3:1
I expect a bounce or a gap up in next couple days. If it does not come I will look to exit aggressively because these setups usually work fast if identified correctly.
Note
since I expect this stock to bounce next week as a result of this doji on the bottom I should of played it much more aggressively with a stop at 1.12 which would of lowered the 3R target to 60.05. I expect this price target to be hit in the next couple days.Trade closed manually
Closing this for a 1R profit because I made the mistake of not following my plan for this exhaustion gap doji setup which states: [when seeing this setup] i have to trade it so that my 3R target is slightly below most recent high.
In this case the most recent high was 60.11 so my stop should of been between 1.09 to 1.14. My target would of been hit so had I played this correctly so I will exit as a result.
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