Reversing The Reversal
Action in the market is not always pat. When you learn to read the signs of
stocks showing strength, you will improve your ratio of success. A good example
is Affymetrix
(
AFFX |
Quote |
Chart |
News |
PowerRating) from Wednesday night’s Nightly Daytraders
Report.
3 Month RS of 80 and higher and close in top
part of
range
|
Name |
Symbol |
Relative Strength |
Price |
Average Volume |
Today’s Volume |
Affymetrix |
( AFFX | Quote | Chart | News | PowerRating) |
98 | 34.80 | 1,613,226 |
1,686,100 |
In addition to the high RS reading and strong trend, the stock
was particularly interesting to a daytrader after performing a reversal of a
reversal. That is, the stock turned up on Monday, reversed on Tuesday, then
offset the reversal bar down with the strong close on Wednesday.
The result is trade-through entry in today’s session and a 2
point profit. Learn to read price action and you will soon be finding winners
like this one.
Have a great weekend,