Our plan was to buy BIDU above 17750 but we don’t chase gaps higher, especially first thing on a Monday morning. The safer entry comes after a quick pullback (in this case, just under $1 in less than 10 minutes, a scary pullback if you purchased early.)

Looking to the chart on the right (a one-minute chart from the gap) you can see the circled blue area. this is where BIDU got back up above vwap, this is where a lower risk entry comes into play with a stop below the low of the day. After the entry and initial stop, the job is the same as always, take partials on strength and raise the stop on balance. Once the stock made a higher high in the afternoon, the proper place to raise the stop to was just below the mid morning consolidation near vwap (green arrow)

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