A Favorite With A Twist
I love to look for the classic setups
such as the ol’ crowd favorite, the Slim Jim. The pattern is quite simply a
consolidation on any time frame consisting of seven or more bars. Mr. Slim looks
to take advantage of the ‘narrowing of range’ as the stock breaks out of the
formation, by entering as the prior resistance area is cleared, and free to move
higher.
In an environment marked by whipsaws as the ETFs
trade within their respective ranges, quite often you have to find ‘shades’ of
Mr. Slim in order to gain the upper hand, and not get shaken out of a strong
stock. I personally don’t use a lot of indicators. My best trades come from
watching price, volume, and pattern. It’s by watching the ‘three amigos’ that I
know I have all the friends I’ll ever need.
11:19:10
Intraday
Setup Alert
Cymer (CYMI)
is up .58 at 38.98 as it tries to clear Slim
Jim resistance on the intraday chart. The stock has formed a ‘shake-n-bake’
version of the formation. Triggers for long continuation plays come in thru the
39 level, as the stock attempts to continue on its daily reversal after testing
price supports above the 50-Day EMA earlier this week.
You might think it’s a ‘shady’ business having to
find a ‘Slim’ that breaks the mold before resuming its trend. I like to think of
it as a clue that the real Slim Jim is about to step forward, and that’s one
friend that I definitely want to greet with open arms after a nice formal shake.