Yesterday LRCX carved out a bearish engulfing reversal pattern on the daily. The stock opened weak and so I looked for an opportunity to go short. Applying Trader X's methodolgy, I analyzed the 15 minute bars as follows:1st bar - weak open but we had a long hammer like tail which could signal a reversal;
2nd bar - spinning top - indecision;
3rd bar - takes out the low of the previous bar so I decided to short on the fourth bar. The stop was initially set above the second bar. During lunch as it began to consolidate, I tightened the stop to just above the high of the 10th bar. I covered into the close.
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