The Failed Top Trade
Earlier this week I posted a blog article laying out guidelines and best practices for picking tops. As it turns out, this has been a textbook week to put them into practice…
Failed top trades have been a great scalp the last few days. The failed top trade consists of putting an offer in 2 ticks above the high with a 6 tick stop and a 12 tick profit target (for the e-mini S&P 500 futures).
This is the type of trade that should never be turned into a loser once it turns into a small winner. If it goes your way even a little, you should be prepared to scratch before it goes against you.