Countertrend Buy Setup In TLT
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Even though trend trades are higher probability trade setups, we did have a nice counter trend buy setup recently in TLT with timing factors.
We actually had a relatively wide timing zone between 2/3-2/7, but the first standout bars in our timing histogram came in 2/3 - 2/4. Our price support cluster came in between 86.31-86.42 which included two symmetry projections and a 1.272 price extension. The actual low was made on 2/3 at 86.43 which was within a penny of the zone.
As you can see a beautiful rally followed. Personally I was just shooting for a counter trend bounce but it did end up turning into a bigger trade (3.38 rally so far) if you used a trailing stop. Now we are watching this next resistance and some timing for a possible high so I would be trailing up a stop on longs at this point!!
