- This is a Day Trade most times, an overnight less often.
- Action is usually taken, not the first day of stalking, but often the second day (not in all cases).
- In SPWR's case this will be a hawk that has happened over the last 4 weeks because the stock has gotten so over extened so far so fast.
Over extention (happens fast)
- Stock went from 4 to 8ish, which is a double 100%, then a slew of upgrades and tons of momo and the stock shot up from 8 to where she is now. Buffet bot a part of the company for roughly 2bil giving them a huge influx of cash.
Has yet to correct (Pull back hasn’t occurred)
- The Stock hasn't corrected, at 8 it went sideways which was a small correction, but more of a rest. At that point it flag'd and I was looking long still because the validity of the news and upgrades gave way to bull logic.
Sideways price action (stock has trouble with a certain level - over/under top)
- You can see the sideways action up here at 13.5 - 13.8.
Para followed by a Lower High = Short
- Would of and did take that trade many times and got stopped many times.
Breaking Key Support Intraday, this means it’s a reshort or a cont hold from the lower high s/s (this is a big drop or rip down to scare longs, then u short the lower high)
Lower Low indicative of a swing, If you have higher lows it might be gearing and not ready to drop yet.
- 12.9 if it tests it may try to stay up, in that case take some off, but if you see a crack below then longs are selling. Wont' go straight down.
Sometimes I short higher highs (it tends to be where novice buyers are) but they are scalps only, then hold when the lower highs are set.
Resistance: Comes in the form as a previous top, a gap fill: either lower or upper part of the gap, but we look for previous resistance in combination with these indicators to initiate position.
This is one of the 5 set ups included in the Boomwin Strategy, which you can read about more here http://www.boomwin.com/p/boomwin-strategy-lesson-preview.html