Here’s Why It Pays To Respect Price
Although Opening
Reversals are quite often associated with quick profits out of the
pattern, remember that in most cases, it is price action that ultimately
dictates our exit, and not the next 5-minute bar. Opening Reversal trades
that trigger out of session highs or lows sometimes need extra time to develop,
especially in early market action that has the stock within the prior day’s
trading range.
This doesn’t mean the trade can’t be taken, but
it can be an important fact to consider when deciding to respect your initial
stop loss placement. Sometimes the good things in life take a little bit more
time to develop.
09:50:37
Intraday
Setup Alert
The Dow Jones ETF (DIA)
is triggering an Opening
Reversals continuation play to the upside. The early technical action has
the index proxy breaking out of an extended Slim
Jim to the upside. The DIAs are up .33 at 82.53.
It wasn’t fast and furious, or as sexy as
the moniker implies, but once more we can say that Diamonds are
“everyone’s” best friend. Like a “real” diamond, this one
took a little bit of time to develop into something very attractive. Given that
our initial stop, .35 away from our entry point, was never elected, this was one
Diamond to hold on to, and let nature, and our profits, rise to the occasion.