This Is One Way To Use Divergences In Your Trading

The market opened
strong.
Apparently people liked the monthly employment numbers
released this morning. As you can see below, Lam Research (LRCX) also gapped up,
but immediately sold off.

09:53:01 (From TradersWire)



Action

Symbol

Order Type

Setup

Stop

 Target

Current Price

Posted By

Buy

LRCX buy stop at 30.01 pullback 29.88 30.30 29.91

TK

It was a disappointing development
for those people who bought the stock at the open. In fact LRCX slipped below
yesterday’s close and recorded a intraday low. But, look at the stochastic. It
was indicating a positive divergence. I placed a buy stop at 30.01.

10:22:54

Follow up on LRCX (Pt 2)

It has hit our target. Sell the rest, or move stop higher.

T.Kamada

If you have questions, feel free to
mail
them to me.