Philip took a good trade on MRX yesterday - one which I would have taken in an instant - and he held it correctly to the R1 point and then took his profits. Excellent trade, brilliant execution. Something all of us can do every day if we have the patience to wait for the set-up and don't try to force it.
Let me go over this with you - a classic BOB set-up coupled with a crossover - coupled with, as we already know, a market turn and reversal (see previous post) and you must have the highest confidence in this trade. While I don't recommend it you can almost take it without a stop-loss (although one placed right below the tail of the previous red candle would be appropriate).
As far as I'm concerned Philip did the right thing by taking profits at R1 and I would have as well but there is another indicator on this chart that we sometimes overlook.
Take a look at the DEI chart, the trade from the previous post - this time with annotation -
Frequently, not always but almost always a top is accompanied by a volume spike (1). This is followed by a lower volume (2) and then an exit candle (3).
If you look at MRX you will see that the first contact with R1 resulted in a return to 4 and then a launch off of that into the 1 - 2 - 3 exit scenario described above.
But it takes real courage not to book profits and a lot of practice to wait for that kind of exit.