When Trade Dynamics Take Precedence
Opening Reversal plays can transpire
very quickly. Yesterday, I wrote about a trades “‘intent”
vs. textbook
entries. As a daytrader, sometimes you have to know when it might be appropriate
to enter a trade, vs. waiting for the Edwards & Magee version to appear.
I find that under certain conditions, or what
Kevin Haggerty calls market dynamics, that if other technical criteria are
alerting you to a high probability risk vs. reward trade, then it just might
“pay” to overlook one price bar down…
09:40:13
Intraday
Setup Alert
Panera Breads (PNRA)
is trading down into daily chart support levels. The zone between 31.90 and
32.26 consists of pattern price supports and a 50% Fibonacci retracement from
the April consolidation lows. PNRA is down 1.32 at 32.27, as we look for
reversal setups within the zone.
During the ensuing five minutes Panera Breads puts in what many consider to
be a very tasty treat….
I put up this alert right before the spinning top
bar
formed above my support zone. This inside narrow range bar was established
after what was considerable intraday volume on two wide-range bars down. Would you
have taken the trade based on these signals? Just a little “food for
thought,” as Panera Breads “rose” to the occasion out of a well-defined
setup in my humble opinion.