Here’s How Reversing The Trade Can Sometimes Be A Better Trade
The original trade type didn’t
end up working out, but there may have
been a very good reason to ‘high-five’ as this stock sank to fresh lows.
09:57:37
Intraday Setup Alert
F5 Networks (FFIV)
is forming a potential
Opening Reversal TrapDoor pattern on the 5-minute chart, against daily pivot
lows–down 1.62 at 30.21.
Now if you read the news, today’s opening pattern
against daily price supports seemed truly perverse in this guy’s humble
opinion, but with the setup there I felt that a high-probability trade still
existed.
Hmm, maybe ‘they’ know something that I don’t,
after all? Well one thing’s for sure, at a minimum, with the pattern and
supports broken, there was no reason not to take the small fractional loss.
However, as I pointed out in our members’ chat, ‘something was going down with FFIV’ and this type of price action could easily have been used to reverse the
trade to the short side. To add to the perversity of the situation, when the
stock did ultimately reverse, there was no technical bottom that I could
personally find by way of my Commodore 64. Although with a paper profit of
approximately .70 at the max., that’s at least a little bit of ‘cents’ to make
up for the weirdness intraday.