Persistent Edge
I know what my edge looks
like, but the question is, ‘do you?’ As
a market analyst at TM, all that I can do is ‘put out there’, what looks to be
some definable edge based on technical patterns and various tools of the trade
that technicians look for in determining a potential trade entry. A lot of what
I do, may or may not be deemed suitable, depending on a trader’s own tolerance
for risk and belief that the long term edge does, in fact, exist.
Personally speaking, one of my favorite setups
involves the 123 reversal, used in conjunction with technical price supports.
They don’t all work, but I do know what works for me. Over the long haul, with
‘my’ rules in place–even with more than the occasional loser, the edge
still exists in my book.
In today’s trade….
12:46:37
Intraday Setup Alert
InterActive Corp. (IACI)
is in ‘testing mode.’ With the issue off more than 4 points at 32.87,
Interactive Corp is now testing daily supports in the form of key pivot lows.
Session lows are slightly above the October 1st low of 32.24, coming in at 32.61
(approx. 1% away). Intraday, this is setting the stock up in a potential
1,2,3 pattern. A 3 point pivot low still needs to be established–with
either a higher, equal, or lower low pivot for proper trade triggers.
13:16:30
Intraday Update
InterActive Corp. (IACI)
is putting in a potential ‘lower low’ version
1,2,3 of the intraday pattern slightly above key daily supports. IACI is
down 4.57 at 32.43.
In this particular case, the edge was taking the
trade off for the small loss as the stock broke below the doji lows. For those
who trade this kind of pattern, the edge that ultimately rewarded traders in the
not-too-distant future was the second entry less than 20 minutes later, as the
stock formed a second 123 pattern to recross the October lows. If you took it
(without my help), the proverbial
‘hats off to you’–because in my opinion, the trade with edge was definitely
there for the taking.