The first chart is a wide view of the 15 min. timeframe for AMZN. The key take away here is how to map out the pivot points (blue lines - areas where price pivots and changes direction). The other thing to notice is that AMZN carved out a base over the prior two sessions and could have been in a position to move at any time. Today it opened at the cusp of the lower PP and set off my alert.I moved to the lower timeframe and watched as it developed one of my favorite bullish bases - the W pattern with a higher low on the second dip. As price moved back up towards the ORH, I entered a stop order 2 pennies above the base. My order was filled as price and volume spiked. There's no retest of the base on this pattern, it just moves vertically at a very good clip. Notice that volume contracts on the second dip of the base. This setup works best on high volume NASDAQ stocks. Don't expect the same result if the second dip carves out a lower low. The criteria for this setup is that it must take place at the base of a PP and the W formation on the 1 minute timeframe must have a higher low on the second dip. Volume spikes on the breakout.
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