The U-Turn
Nimble daytraders who are quick on the draw love to take action when market
reversals occur to the upside, as they did this morning. Why? Well for one, it
gives them a chance to get in on a trade at a lower denominator and catch most
of a successful move, if is turns out to be one, with little risk — in the event
it does fail. They also get in while everyone else is shaken out by the earlier
negative action. Our goal at TradersWire is
to assist you in spotting this activity when it takes place, in a manner you can
then take advantage of.
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10:41:02
Intraday Setup Alert
QLogic (QLGC)
has reversed its down open, gone positive, and is now pulling back from its
intraday high. QLGC is now down 0.67 at 50.65
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QLogic
(
QLGC |
Quote |
Chart |
News |
PowerRating) gapped down on the open, tried to rise, then slid
to its low at the 10:15 bar. It then began to stage a reversal. The stock is
alerted when it goes positive on an intraday basis after running out of a
Haggerty 1-2-3 bottom then begins to pullback from its intraday high, mirroring
the action of the Nasdaq Composite
(
COMPX |
Quote |
Chart |
News |
PowerRating).
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The reversal sticks, and traders are able to capture a great
move off the intraday low.
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QLGC has been range-bound ever since. Daytraders who spotted the
reversal got the best opportunity to take profits off the table by the time
everyone else was on to what was going on. I did not even hear CNBC mention
anything about the move until the Naz had gone positive on the day — 45 minutes
after the QLGC post.
Using the TradersWire if
you are a daytrader (or an aspiring one) who is not adept at taking advantage of
reversals, will help you quicken your learning curve — by using examples such as
this one to visualize the keys that tip you off that one may be coming. When you
can learn to spot them, you will then be able to enter lower-level trades with
much more confidence — and a greater rate of success!
Have a wonderful weekend,
Duke