Here’s How To Buy Relative Strength At A Discount
Trading Relative
Strength out of patterns exhibiting temporary weakness in relation to
the larger trend is a simple but
powerful way to gain entry into those issues that are leading the pack. One
of the tools to help you in your preparing your focus list of stocks is
the Nightly
Daytrader’s Report. This list contains stocks showing the potential to
follow through the next trading day on their existing trends, based on relative
strength, pattern and volume characteristics.
Of course the stocks pinpointed don’t always work
out as anticipated, but that’s why we wait for the pattern to set up the next
trading day. If a price pattern and entry does occur the next day, over the long
haul, the trade has a higher probability of working out because of the
underlying confirmation in the form of relative strength, pattern and volume.
On TradersWire today we posted one such opportunity for a long entry early on in
the trading day.
10:41:47
Intraday
Setup Alert
Cymer (CYMI)
has pulled back from highs in an intraday contracting consolidation pattern. The
stock was mentioned in TM’s Nightly
Daytrader’s Report under High RS stocks. Cymer is up .82 at 36.70.
The entry proved to be early as the stock
continued to consolidate, but with our money management and strategy in place,
we ultimately saw the high-probability setup follow through in the direction of
the trend, thereby confirming its spot in the Daytrader’s Report.