REV had choppy price action as Bryce was watching it.
He took a position at around $6.25.
As Bryce sat through his trade, he didn't love the level 2 action. But he noticed there were buyers soaking up the dips…
So even though it dipped below his lower trend line, he gave it some time and used $6.20 as his risk.
What Bryce liked about the pullbacks is that REV retested the lower trend line and VWAP and held support.
For Bryce, that's a bullish sign. He says a failed bearish pattern is bullish.
So Bryce was looking for REV to push through $6.40 resistance and a retest of the $6.50 level.
He wasn't sure it could break the high of the day because REV had already run for multiple days. And in Bryce's eyes, that meant it was becoming a bit over extended. And shorts would probably be looking to enter and push it down at the HOD.
Check out Bryce's trade on the chart…
REV chart: July 6, 2022, 1-minute candle — courtesy of StocksToTrade.com
But there are multiple ways traders can draw lines to find trends. They can work on intraday charts and on long-term charts...
So, as Bryce says, it's not an exact science. And you don't get instant moves...
There are consolidation periods and fake-out moves. You just never know what can happen.
So make sure you combine your trend lines with other indicators like volume and VWAP.
If you want to learn more about how Bryce uses trendlines, his trades, and strategies — join the SteadyTrade Team. You'll get access to all his weekly live webinars. Plus, they're all archived.
Have a great Money Monday, everyone. I'll see you back here tomorrow.
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