My mouth was literally salivating as I saw this play setting up. I entered my limit sell order and all I could do was wait and see if price would trigger it before reversing. To my delight, I got filled and within seconds had reached my Net Daily Goal for the day.

This would have been a play that I would have wanted to take regardless of the Flash Formation Fractal, but its presence just helped me target my entry even better.

There is this perception out there that fading a stock or security is much more risky than playing a breakout or pullback. But this simply is not true. When proplerly set up, a fade can offer you a high reward, low risk opportunity that you simply can’t get via any other method.

The reason for this is because you are entering precisely in the area where you are anticipating an imminent reversal. Thus, your stop can be placed very close to your entry. The play gives you a very clear signal when it is wrong, namely, that price doesn’t reverse soon and you can get out with a small loss. But when it works, the rewards can be much greater because you have entered BEFORE everyone else and can exit with a profit BEFORE they do as well.

Isn’t that the name of the game?