Trade Review - SAGE

When SAGE showed up in screener there was a bullish continuation pattern on the daily timeframe and a potential overextension on the higher timeframe downtrend.



The higher timeframe is in a downtrend, have made a measured move down (volatility projection) and is extended from the mean, thus we observe for potential reversion.

The lower timeframe provides a bullish continuation setup, which allows us to enter with a more structured approach. There was a failure test entry earlier, but since this was missed we look for a more clear range expansion as a confirmation. The target is a measured move up, as this is a projection of the current volatility.



In this chart you can observe the actual expansion / breakout, since there was a noticeable contraction 2 bars prior the move could be entered quicker. The stop is located 1-2 ATR from the entry point, which allows for a 1.5 to 2 R trade.