At First Glance……..
Breakout players would be wise to look at the first breakout from a
consolidation to a new intraday high. Kevin Haggerty calls this the base of the
Trading Tree, and this first breakout is often a solid move.
10:14:43
Intraday Setup Alert
eBay (EBAY)
trading in an ascending triangle on its intraday chart. EBAY is up 1.81 at
60.85.
The stock does a fake-out move before moving higher. This is
often a good sign, as the "scared money" is shaken out, clearing the way for the
stock to trade higher.
The volume confirming the move doesn’t hurt either, as the stock
moves more than 1 point higher after taking out the top of the triangle. You can
often find viable trading opportunities by looking for the first breakout.
Until tomorrow,
Duke
P.S. Many thanks to Mike Brooks for filling in for me and writing this column while I
was on vacation. For those of you who didn’t see them, they provide some good
insight into how to incorporate the applet into your trading.