Gapper B&B - priceline.com Incorporated (Public, NASDAQ:PCLN)

This is a zoomed in view of the early action (1 minute time frame) on PCLN, an earnings gap (thanks to José for the zooming tip). I was hoping this would trade sideways a little longer because the 50 SMA was still very far away as price printed the third pivot into the base. The next two bars were narrow, the second of which was NR7, so I knew it was going to BO. I took the trade knowing the premature BO would likely not reach my target of $95.00 from the daily support.

Characteristics of this type of setup:

1. 3 pivot point base;
2. Lower highs off each pivot;
3. Tight price/volume contraction just before the BO. Sometimes this last part occurs just above the base ie. mini base within the bigger B&B setup.
4. If all of the MAs are in close alignment just above price, the setup is A+. PCLN did not meet this last requirement but still good for a fast trade.
   

I took half off as soon as price took out the previous bar high, so trail a stop two pennies above the previous completed bar. After that PCLN, formed a solid 2 PP base and I tightened my stop on the balance.

Keep PCLN on the WL for future weakness if it fails at $95.00. Today was a high volume gap and I don't think even Captain Kirk can save it now.

PACR is a good example of a bear flag right out of the gate. I missed the initial trade, but did manage another fast trade when it carved out 3 NRIBs with all of the MAs in perfect formation for a breakdown.

FWLT, another gapper, set up a 3PP base later in the session. I waited for price to consolidate the initial thrust. Turned into a big winner with a scalp trade into the close to sweeten the pot.