Here’s Why We Take The Trade
Before anyone was talking about Eminem, a.k.a the other Slim, Kevin Haggerty was talking about “Slim Jim.” It’s trades like this that continue to make this technical pattern a hard act to follow, and a superstar now and forever
10:10:33
Intraday
Setup Alert
Harley Davidson (HDI)
is forming a Slim
Jim at its intraday lows. The stock is a member of TM’s Implosion List, and is up 0.06 at 37.56.
After the initial “spin cycle” of the
opening order flow, it’s back to business. In Harley Davidson’s case, this means
looking for possible continuation entries into a Low RS issue. Mr. “Slim
Jim” establishes himself several bars later, and we take entry on a breach
of pattern supports. Since initial risk of the pattern is under .35, we use
pattern resistance as our initial stop loss. Three bars later, Harley kicks in
to second gear, taking out supports decidedly, before further motoring to the
downside, and taking us on a very nice ride in the process.