Sometimes the market bring us amazing opportunities
Dollar Tree 
DLTR is bringing us an historical buy opportunity.
The $60 zone has been a major support since 2016 and now we have tested it twice. When this happens there are 2 scenarios:
1. A very big rally demonstrating that this support level is still strong (+40% minimum opportunity).
2. A fast break downwards facing a very bad situation and a continuation of the bearish situation.
How to Trade in this situation?
There is a simple strategy to handle the risk in this situation where a win is almost sure.
If you simply expect 100% of the position to return a 40%, you can be stuck here for a while and also lose your 5% as a Stop Loss.
Try this:
All positions have a 5% stop loss.
50% take profits at 5%
50% take profits at 40%
This way, with a very very high probability your 1st half will make enough money (5%) to cover the Stop of the live position.
So, you are in a risk free trade probably in just some days.
Worst case?
You keep losing a 5%!
Want more trades with great risk return?
Feel free to follow for daily trades! If you are still reading, thank you :)
DLTR is bringing us an historical buy opportunity.The $60 zone has been a major support since 2016 and now we have tested it twice. When this happens there are 2 scenarios:
1. A very big rally demonstrating that this support level is still strong (+40% minimum opportunity).
2. A fast break downwards facing a very bad situation and a continuation of the bearish situation.
How to Trade in this situation?
There is a simple strategy to handle the risk in this situation where a win is almost sure.
If you simply expect 100% of the position to return a 40%, you can be stuck here for a while and also lose your 5% as a Stop Loss.
Try this:
All positions have a 5% stop loss.
50% take profits at 5%
50% take profits at 40%
This way, with a very very high probability your 1st half will make enough money (5%) to cover the Stop of the live position.
So, you are in a risk free trade probably in just some days.
Worst case?
You keep losing a 5%!
Want more trades with great risk return?
Feel free to follow for daily trades! If you are still reading, thank you :)
Trade active
The first Take profits has been hit, so I have now a risk free trade to enjoy the upside.
I'll use trailing stop to lock in profits as soon as it makes sense. For now, 5% earned.
Note
The opportunity is working fine, you could also split the current position into 2 different take profits.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.