Barrie Einarson here with today’s edition of What Makes This Trade Great, and I want to take a closer look at a setup that really highlights the value of patience and trusting the AI, using VNCE as our example. To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
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The initial alert came in at 3.93. The stock pushed slightly higher, but it didn’t hold and eventually pulled back enough to hit the stop at 3.81. Now, that’s the kind of action that can frustrate traders. You take the trade, it looks like it’s working, and then it fails. A lot of people will simply move on at that point.

But this is where the AI gives you an edge.

When the trade stopped out, the system calculated a re-entry level at 3.87, which is the midpoint between the original entry and the stop. That level becomes very important because it represents a point where the stock is attempting to regain strength after shaking out traders.

Once VNCE reclaimed 3.87, it triggered that re-entry alert. From there, the move was decisive. The stock ran up to 4.45 before any meaningful pullback. That’s a substantial move, especially considering it came after what looked like a failed setup.

This is why I often emphasize the re-entry strategy. The first move can be deceptive. It can draw traders in, only to reverse and trigger stops. But that shakeout can actually set the stage for the real move. By the time the stock reclaims that midpoint, it’s showing renewed strength and often attracts momentum traders back into the trade.

There are two ways to approach this. You can take the initial alert and then re-enter if needed, or you can focus strictly on re-entries and avoid that first layer of risk. I tend to spend a lot of time watching for these reclaims because they can offer cleaner entries with better follow-through.

The important takeaway is not to write off a trade just because it didn’t work the first time. With the AI levels, you have a structured plan. You know where the re-entry is, and you can act when the stock proves itself again.

This VNCE example is a strong reminder that some of the best opportunities come after the crowd has been shaken out. If you’re paying attention to those re-entry levels, you can position yourself for moves that many traders end up missing.

Have a great trading day and we’ll see you in the next session.