Ever so often I find myself in a trade where the obvious happens. Most of the time however, finding that next needed puzzle piece takes some doing. There are those times though where it just jumps out at you – you see it clearly.
I have a long position in $TRIP (Trip Advisor) and thus have a 5 minute chart of it up on one of my screens. One of these clear puzzle pieces jumped out at me as price moved up to test the high of day from yesterday:
In my view it is always important to keep in mind what others may be thinking, what their perspective may be. Then take this information and protect your position accordingly, make adjustments if need be.
Do your best to know what “they” are thinking.