Hubert Senters here.

In the last video we talked about what is a bracket trade. Now, let’s cover how to dig into a little bit more the finer points of the details of this trade so.

One of the things that could potentially hang you up is if you don’t have a very quick plan on how to trade this. So I want to make sure that we clarify that in this video.

So if you’re a swing trader then you’re probably going to wait for the close. First, let’s go back over what a bracket trade is. Something that either gaps up or gaps down and has a gap established to it.

We’re going to do a bracket of $126.98 will be a potential long and a bracket where an execution of contingency order or pending order if it goes below $120.03 we’re going to short it.

You have to know ahead of time is a trade above $126.98 is going to do it for you or do you need the market to close there. Now, sometimes it can be a little bit confusing but you could have a market that came in here and went up here and now, it’s above $126.89.

But then closes down here. Which one are you? I’m going to do an execution just a penetration of your order and that’s good enough to do a fill and if that is, that’s fine.

Or you’re going to wait for a close? So this one would be no go if you’re looking for a close. This one right here would be a good to go if you’re doing it for a close. Now, unfortunately if you do a close you have to do the order until the next morning.

Unless you’re just like okay, the thing is setting up here. You know it’s going to close above $126.90 at that point so make sure that you have define details of this trade set-up set in stone in your trading plan so you can follow your trading plan and you won’t freak out when the price action starts moving in one direction or the other.

Good luck. Hope it helps. See you on the next video.