LVS - REVERSAL DAY (WEDGE BOTTOM)

DAILY

30MIN

30MIN WITH 200 DAY MA REFERENCE

5 MIN

1MIN

LEVEL FROM PRIOR DAY FOR REFERENCE

• The overall market sells off again following weakness in Asian market due to the Japanese earthquake.
• We have a gap down in the overall market. 
• LVS also gaps down erasing most of friday's (prior day's) gains. If you were a buyer on friday, you'd be nervous about your position. You'd be even more nervous when LVS is forming a wedge from 9:30 to 10:30 right at the area of Friday's morning breakout area, where majority of the volume was done at (circled volume). You'd be shitting your pants when today's wedge broke to the down side. Momentum is now to the downside. IT'S ALL ABOUT THE PSYCHOLOGY OF ALL TRADERS THAT YOU ARE TRADING AGAINST.

How to trade short:

• I'd do half the position right at break down and put stop loss at the last lower high which is about 30 cents away. Smaller size, more wiggle room. Risking $100.
• I will add another 1/4 on retracement to breakdown area and another 1/4 on breakdown of retracement.
• I will now lower my stop loss to just over the top tick of the retracement and have a somewhat breakeven or scratch trade if doesn't work out
• I think i'll be covering 1/4 at 38.5ish and the majority or all at 38.10ish on break of steep down trend.
• That'll give me 30 cents on 1/4 lot and 60 to 70 cent on majority of lot
• I was risking 30 cents on 1/2 lot  to making  on avg. 56 cents on the whole lot. so risking 75 to making 280 is almost 4 to 1 reward to risk.

How to long:

• The long trade comes when LVS makes wedge bottom combining with 200 day ma as a powerful support. However, we aren't sure of this initial bounce since the price action/momentum on longer term time frames still resides on the bearish side. See 30 min timeframe.
• So we only go about with at most 1/2 a position. and ride the trend upward with stops below each higher lows.
• Capital preservation is always key and this is a lower probability setup. 
• So we are risking 17 cents to making 50 to 60 cents or about 3:1.