Yesterday was a distribution day which helped neutralize the overbought posture.
Last week, AMZN looked like a symmetrical triangle. Now it looks more like a descending triangle is forming. Still, we should bounce on the second test of support à la Turtle Soup.
2 comments:
Hi Jamie,
Quick question. Do you review the stock (and specifically the watchlist) for a good setup before the bar is finished forming in anticipation, or after the bars are finished forming?
Also, if there are several stocks that are lining up at the same time with a good setup, how do you put entries on all of them without one running away?
Thanks,
J
Hi James,
I am constantly reviewing the charts in anticipation. However, I do have certain criteria which must met before jumping in. The criteria on a 15 min. timeframe for a BO long are volume, price and proximity to 5 EMA. If a stock is running, I wait for consolidation and ideally some NRIBs. If all the criteria are met, I place the buy stop order above the outside bar or previous bar high before the candle completes. If the setup is tentative, I wait for the bar to finish before placing the order.
If several stocks are lining up at the same time, I won't be able to get in on all of them. It's hard to manage more than 2 trades at the same time.
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