The Leaderboard shows a capture of ATHM - AutoHome, Inc - and its steady rise. As price breaks out to new highs, we can see that for this chart, in particular, brings a fade to higher support where lower risk entries can be engaged.
We may have to wait for a time to engage at a low-risk event as buying here at the new highs well above the breakout congestion areas near 100. We had a gap up today in the breakout.
See the image for a few setups that hold potential- the goal is to assess your risk and move within that space. Sometimes opportunities need to pass us if we do not like the risk event. This is what makes a disciplined investor.
It is important to note that a bullish chart can rise into targets without coming back into our support zones. But to trade with discipline means we do not chase opportunities but wait for them. This proves itself out time and time again, the most difficult thing for a trader to do.
When we chase trades or take them outside of high-quality areas for participation, we will expose ourselves to unnecessary risk.
