Mike Bellafiore, author of the “trading classic” One Good Trade and The PlayBook, talks about his SMBU Trade of the Week in $FB. Even though he thought $FB was going to trade lower, when it broke out to the upside, he followed the price action and captured an excellent risk/reward opportunity.
Highlights from this trade:
1) You do not have to predict where a stock is headed to make excellent risk/reward trades.
2) Learn a swing pattern trade that repeats often for short-term traders.
3) Learn an important news catalyst that manifests outsized moves.
4) Review a specific consolidation pattern that is likely to move substantially away from this range.
“You can be better tomorrow than you are today!”