Sometimes, big things come in small packages…
That’s especially true for small stocks, which can provide big trade opportunities.
And today, I’m going to showcase how the big index for small stocks in the Russell 2000 Index (RTY) is setting up for some great trading opportunities.
Let’s take a look at capitalizing on what we see as a potential trade developing in RTY and review what’s happening inside the daily and hourly charts…
The Russell 2000 (RTY) Trade Setup
Here’s how the daily chart shows the potential buy trade in RTY is setting up…
The RTY daily time frame is in a down channel.
The market hit the bottom of the channel and is now pushing bullish towards the top of the channel price point 1,904.20, about +1,315 ticks above the market.
It will be a good idea to turn to the one hour time frame and look for low prices in the buy zone.
Next, let’s look at the hourly chart for further indications for the trade…
The one hour time frame is in an up trend.
The market has an up Fibonacci with an extension price point 1,810.80, about +359 ticks above the market.
Entry: Counter trend line break-bullish in the buy zone.
As long as the market stays in the buy zone, it will be a good idea to turn to the five minute time frame and to look for Tunnel Trader, Destination Trader and/or Chandelier Trader long ideas towards 1,810.80.
The Bottom Line
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Keep on trading,
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