In recent months we looked at a number of metagame examples – trading at places where the "the other trader" feels extreme stress or fear.
Today, I thought we could look at another one. Because I just LOVE these setups.
You might recall this general concept from prior articles:
Things don't always go according to plan though.
If you missed the entry… no problems.
Let it go. It wasn't yours to catch.
There will be MANY other trade opportunities. Stay focused.
In fact… sometimes that next opportunity comes along VERY quickly.
Let's look at an example, a BOF setup on break of the high of day.
We'll start with the higher timeframe chart to get some context. And then move on to the trading timeframe and lower timeframe charts to discuss the trade opportunity.
It's messy. But it was effective.
The key point…
Trade opportunity is often found at the places where "the other trader" is making decisions based upon extreme stress.
If you miss an entry on initial breakout failure, don't panic and chase. Let it go. But remain alert. There could be a second chance entry on retest of the point of breakout failure.