Here’s When To Fade The Crowd
Eventually all good things must come to
an end. The key to knowing when to fade the trend is pattern and price. By
defining our risks with a well-developed pattern supported by technical levels
that might indicate a high probability of a reversal triggering, we give
ourselves a trade advantage.
In this particular case we were able to get
“INTU” it early…..short that is.
09:49:35
Intraday
Alert
From the Nightly Daytraders
Report Intuit (INTU)
is testing resistance on the daily chart in the form of a downsloping trendline
extending from December. The stock is currently trading up .78 at 48.30. A
breakout above the opening range high of 48.42 would suggest continuation of
trade, although traders should watch for reversal entries out of patterns for
low risk, high reward plays.
Still stalking, and then….
09:56:21
Intraday Update
Intuit (INTU)
is trading up .68 at 48.20. An Opening
Reversal for short entries will trigger below 48.10.
…and finally, “Oh baby, it’s too easy!!!” A textbook example of
using background confirmation with a pattern setup to achieve real world,
“out of this world” results. After establishing the short, INTU made
getting “out of it” very easy. The first half, using an initial stop
loss of .35, based on the highs of the session, which also happens to be the
most that I look to risk on an intraday trade, was a no-brainer for placement.
The second half, depending on what type of money management approach you
like to use, requires a bit more thought, but ultimately ends up being a trade
that we were very glad we considered.
Chris Tyler