Keeping The Edge Intact
If you’re gonna play against the trend when
it’s spewing red, make sure you’ve got a contingency plan in place in order to
keep the edge. IÂ love looking for high-probability reversal plays
against a technical zone. As you know, sometimes we have to take the stock when
it’s ‘close enough for government work’, but maybe not quite up to a perfect
test of our anticipated levels of support. As far as I’m concerned, that’s quite
alright, as long as we stay consistent with our edge, and keep our protective
stops in place just in case the ‘downward flow’ isn’t quite finished.
09:53:58
Intraday
Setup Alert
From the Nightly Daytraders
Report, Magma Design (LAVA)
is forming a potential TrapDoor Opening
Reversal. The formation is setting up slightly above the 50-Day EMA and a
50% Fibonacci retracement from the July lows. LAVA is down ..86 at 19.31.
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I know I’ve quoted the song before, but even
though I saw it, and ‘it’ wasn’t a pretty sight, keeping a tight stop in place
within a well-defined plan ultimately keeps us from seeing more red, and the
ability to look on to the next high-probability trade.