RUSSEL 2000 - Bullish Pennant - Value Area

1. Zoomed out to provide perspective - Long term ranging market with a recent breakout. Now trading close to the previous resistance.

2. Market trading above the 50 and 200 EMAs - bias is to look for long opportunities in value areas.

3. As mentioned in point 1, market trading in a value area. If a long trade goes against us, we'll be able to understand quickly and a cheaply that our idea didn't work out. Conversely, if a long trade goes our way, there's a meaty reward ahead. In short, there's a risk / reward asymmetry presenting itself in this market.

4. Where is the trigger for a long trade?
a) Edge of a pennant pattern with a breakout leaded by an above average size bullish candle.
b) Preceded by another above average sized bullish candle
c) RSI depicts a shift of momentum to bullish.

5. Trade
a) Current daily candle
b) SL below the pennant pattern - $1887
c) TP - follow the trend and close position upon EMAs crossings or aim at the this market's all time highs range.

6. Risk management: No more than 1% of yr total equity at risk.

Cheers