On the 4 hour, I have drawn my range better using the orange Buy to Sell box as the top of the range and the May 30th as the bottom.
I have marked the green and red dotted lines as stop loss liquidity targets
Currently price is in a bullish impulse move higher
I will take the aggressive entry with the limit order right under the buy to sell red line. Stop just above with 185 ticks. I am targeting the stops under the red dotted line and about the middle of the range because from there I am not sure where price will go after.
I don't want to guess a break out of the downside if it indeed bounces off the middle and breaks out to the upside.
If it breaks out to the upside then that will negate my bullflag thesis and I will have to rethink my longer term plan.
The conservative entry is when it breaks the bull move's counter trendline in green.
What makes me second guess the breakout to the downside is that this range is being stacked on top of the previous range with the May 30th bottom being right AT the middle of the last range.
Trade Entry:
Limit Sell Order 6 MYM Micros at Price: 40,042
Stop Loss at Price: 40,227 with 185 ticks.
Risk: $555.00
Target: 39,172 with 870 ticks
Potential Gain: $2,610.00
Potential Risk to Reward: 4.7R
Estimated Time For Holding Trade: 3-6 days upon being filled
http://dlvr.it/T8Ymkz