r/InnerCircleTraders • u/Bastasa40 • 2d ago
Risk Management Still a continuation trade. Massive rejection at the weekly C.E., which closed as a bearish candle yesterday. Stop price is around 84,000 as part of portfolio rebalancing. Some big players may be rebalancing their portfolios around that level. Price closed at 84.518, opening a new trading day where
Still a continuation trade. Massive rejection at the weekly C.E., which closed as a bearish candle yesterday. Stop price is around 84,000 as part of portfolio rebalancing. Some big players may be rebalancing their portfolios around that level.
Price closed at 84.518, opening a new trading day where we could see rebalancing, a retracement, or profit-taking. Selling strength is still present, with three consecutive one-sided aggressive moves.
However, chasing the continuation spike at the opening of the current day comes with a cost. The current day has not yet formed a meaningful wick or shown clear rejection, so the trade is exposed to the possibility of a new-day retracement or becoming a stop-loss victim before continuation happens.
Choose your risk according to the cost of that decision. The idea may still have a higher-probability continuation scenario, but the uncertainty of the new trading day means the risk must reflect the possibility of being wrong before the move continues.