Quick On The Draw
When you use the price and volume alert generated by the java applet in
conjunction with your daily and intraday charts to sift out possible trading
candidates, many times a simple alert can trigger the potential for profit when
you put the pieces together. This morning, Synopsis
(
SNPS |
Quote |
Chart |
News |
PowerRating) gives us
such an example. I keep the applet up on one of my computer screens and monitor
it every two or three minutes to see what is coming across the screen. At 10:08
an alert popped up on SNPS:
| STK | 10:08 | SNPSÂ | pulls back 20% from high of 7 days ago |
A quick look at the daily chart showed that SNPS had violated
support of a 14-week trendline and had started to pull back from the
shorter-term downtrend.
I then clicked the tab on my charting software to look at the
five-minute intraday chart and saw the stock beginning to pull back from its
intraday low into a bearish pennant pattern.
So I quickly process all this information. I’ve got the market
as a whole going down in the first 40 minutes of the session, a stock that has
been shedding more than 16% of its value in the past six trading days and is
forming a bearish pattern on the intraday chart. I like to trade with the
overall trend and it appears the path of least resistance is to the downside,
so the following post goes out on the Insights
From The War Room:
10:19:55
Intraday Setup Alert
Synopsys (SNPS)
is tracing out a pullback from its intraday low. SNPS is now down 1 3/4 at
49.
The stock immediately starts to fall out of the pattern and
short-term players grab almost 2 points.
Short-term trading is about being quick to process, but also
about waiting for the right moment to pounce. Utilizing the TradersWire will
give you a first alert to price action as it is happening, giving you quite
literally an extra set of eyes.
Have a great weekend,
Duke