Ready To Trade From Both Sides
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It’s truly a wonderful game when
you have the opportunity to play both sides in the same session. I have a
strong tendency to focus on long entries. Certain days I’ll limit myself to long
reversals, while on other days it seems totally appropriate to jump on the
‘pattern breakout’ bandwagon. It’s on those rare occasions that it makes sense
to me to attempt entries from both sides as patterns develop. It doesn’t happen
that often because the intraday volatility and price testing must be in place,
in order to warrant such calls. But, when the stars are in alignment, and you
find that there’s extra confirmation from the TM
Chatroom…it’s just too easy to not participate as market maker for the
day…thank you Hobbs & Co.
Biovail
(
BVF |
Quote |
Chart |
News |
PowerRating) was one such issue in
today’s trade. Biovail had been listed under my list of potential short side
plays in the Nightly Daytraders Report. Most of time, these overnight looks can
be difficult triggers in the next session. It so happened that in today’s trade,
Biovail did offer the trade opportunity for shorts. I personally wasn’t there to
help the members as it triggered on this particular occasion. As a matter of
fact it was down significantly by the time I first looked at it…almost into a
potential support zone between 39.75 – 40.25. Very interesting, but also very
volatile, and admittedly difficult to play if you only have access to the NYSE
for trading purposes. I happened to be in a private message conversation as the
low bar was set, and the ensuing upside reversal took place, but with the
volatility I thought it was best to just monitor it at that juncture. Sometimes,
I really wish that I did throw caution into the wind…but, patience was
ultimately rewarded, but now from the other side.
11:20:39
Intraday
Setup Alert
Biovail (BVF),
from the Nightly Daytraders
Report has rallied off of session lows on what could be considered a
technical bounce on the daily chart. The stock now appears ready to resume
it’s trend lower as it tests intraday consolidation supports. BVF is down 1.29
at 42.72.
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You can see volatility and pattern development
from both sides in today’s trade. But, Biovail also had the backing of Mr.
Fibonacci (and Hobbs) in today’s trade. With that in mind, after the initial
short alert, I started aggressively monitoring for potential pattern reversals
to set up. Lo’ and behold, Mr. Fib was shortly thereafter introduced to our
intraday friend Mr. 1,2,3.
After the push lower from our short alert, the
stock notched a 3 pt. with the 41.85 low. The fresh technical decision was then
alerted to our members in TM chat room. You can see what happened next, a surge
higher thru our buy point. Some might attribute this to the intraday news that
came out, but since I like to concentrate on the technicals, and not the ‘news’,
we’ll let other folks interpret that, while we continue to interpret and profit
by our trusty charts.
Chris Tyler
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