Third Time’s A Charm: Add This Setup To Your Bag Of Tricks
The more times a trendline, high, or low,
is hit
without being violated, the more significant that trendline or level becomes.
It’ll either be respected or taken out in a big way. A trendline with three
points is more significant than a line with only two. This morning, TradersWire
members saw this post:
10:19:45
Intraday
Setup Alert
Nike (NKE)
is challenging a slanted triple bottom on the extended intraday chart, as
well as support levels on the daily (recent price lows and a 62% Fib.level at
42.26). Nike is a Low RS member of TM’s Nightly
Daytrader’s Report and is currently trading down .25 at 42.45.
Here we’ve got
a chart of Nike going back two days and showing an angular triple bottom with
three points. What happens when that line is hit the fourth time and then
breached? The stock loses over a dollar in fairly short order.
Bottoms don’t have to be perfectly horizontal; many times they’re not. When you
see these angular setups, pay attention, because often you can get moves like
this.