Here’s A Trade With Edge
On a day where it seems the majority of
issues have gapped and trended lower into basing patterns, I’ll
gladly play the odds for a favorable reversal entry when it presents itself. It
might sound like a bit of a “one trick pony” when we have a session
like the one that we’re witnessing today. Ultimately, you have to know what kind
of race you’re best at running, so when the technical triggers go off…it’s
time to take the trade. If trading reversal patterns off of supports has been
your bread and butter, then it’s time for action, and not time to second-guess
your trading edge.
One alert that I personally sent out today, which happened to set up like
many other stocks, and not so coincidentally, many other alerts, was Semtech.
13:29:55
Intraday
Setup Alert
Semtech (SMTC)
has formed a 1,2,3
in today’s trade. Pattern lows are established slightly above a 50%
Fibonacci retracement level and the 20-Day EMA. SMTC is down 1.18 at 15.88.
We don’t know ahead of time if the supports and
pattern will guarantee success with any individual trade, but we also know for a
fact that there’s definitely no edge in not trading a favorable setup when the
market presents it to you.