Here’s Why You Should Watch The Previous Day’s Low
So often traders place
stops just below the previous day’s low to protect their long
positions, or open new short positions. Needless to say, this is where you see
whipsaw actions.
09:53:31
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
Buy |
HOTT |
Buy stop at 19.51 |
19.37 |
19.75 |
19.46 |
TK |
Hot Topic Inc (HOTT) gapped
up at the open, but it immediately sold off. As you can see below, the issue
briefly violated yesterday’s low and formed a bullish long tail. It was a
potential reversal situation. We placed a buy stop at 19.51.
10:00:26
Follow up on HOTT (9:53 post)
Sell half to take 10 cents. Move stop to breakeven.Â
T.Kamada
Feel free to mail me your
questions.