Here’s How FlipTops Can Provide Support
One way of adding confirmation to a
pattern’s price trigger, is by respecting the longer time frames. When a
market gaps higher, and you’re looking for a continuation entry in the direction
of the trend, it’s especially important to “take the time” to
acknowledge those stocks that have demonstrated strength beyond the intraday
time frame. There’s a saying that a rising tide lifts all boats. This might be
true, but I’d still rather play in an issue that has been seaworthy under recent
stormy conditions, and will be geared up and ready to sail under clear skies,
when the time is right.
10:01:31
Intraday
Setup Alert
From the Nightly Daytraders
Report j2 Global Communications (JCOM)
has triggered a continuation entry out of a Flip Top Opening
Reversal pattern. The issue has also taken out recent pivot highs with this
action. JCOM is up 2.10 at 31.71.
The initial trigger out of JCOM occurred on a
FlipTop “continuation," but with the daily chart showing potential
resistance in the form of pivot highs less than .25 away, a case could be made
for waiting. With even “the ghosts of Christmas Past rising to the occasion”
in today’s trade, the potential for an early, swift reversal was in the cards.
It’s when stocks like JCOM began to show real strength, by holding intraday
breakouts (i.e., FlipTop) and then testing recent daily highs, that the
emotional opening skyward changed into the friendly skies for continuation
plays. The path was cleared for a well-defined entry.