Missed The First Entry? Try This
The 1,2,3
can be a very powerful reversal pattern, especially if one focuses the setups on
stocks that have been exhibiting strong price behavior recently. One type of
entry from this formation that confirms the resumption of the daily trend is the
Continuation Entry off the 2 point. Even though we’re looking at High RS
stocks, on any given day, there could be a continuous bout of profit-taking, so
if you don’t see technical supports to trigger entry off the 3 Point bottom,
then the continuation entry might be the more solid entry.
12:59:54
Intraday Setup Alert
From the Nightly
Daytraders Report Amgen has put in a 1,2,3 continuation entry on the
intraday chart (see chart). The stock was listed under the new category of
Institutional Favorites on last night’s report. AMGN is trading up .17 at 52.67.
In Amgen’s case, although the 1,2,3 pattern was
confirmed by the 11:50 bar, there was no technical evidence of support on the
daily chart, other than the fact that this was an issue demonstrating relative
strength as of late. At the 3 Point low, the issue was still down on the
session, and with the overall market acting mixed at the time, a continuation
entry, although at a higher established price, would prove once more that the
trend is indeed your best friend.