Hey, traders.
There's an interesting paper in short on the horizon.
Yes, yes, despite the fact that shares of this company have grown dramatically in 2 weeks, I will be looking for a point of entry into the short.
And that's why:
1. In two weeks, the paper went up 104%.
2. If you look at the chart of the first week of growth - you will see the increased volumes, which were preceded by 5 weeks of position accumulation. The increased volumes in this case indicate the realization of the position.
3. The second week of growth - and again high volumes, but they are already fading.
4. The price went from 10.3 to 21.03 with no rolling back , i.e. 104%.
5. For further growth we need free stocks, which are usually accumulated either in the channel or in a counter trend. There was no movement in the channel or counter-trend in this paper.
As a consequence, the volumes that the big long player gained in June and July should already be ending.
6. The level 20.64 was formed on July 16. This is a strong level with TF: W.
7. We look at the nature of the break-up of this level: on July 20, the bar broke through the level, reached the price of 21.85, but then rolled back! The long player has no volume left for further hike up.
8. This rollback can be the beginning of a false breakout by two bars.
It's a safe scenario to enter the short:
Today's daily bar should open above 20.64, but it must close below this level.
Thus, it will form a False breakout formation by two bars.
The entrance is on the next daily bar, i.e. on Wednesday.
I'll set the Sell Limit Order at 20-30 points below this level.
The protective SL over the high of the false breakout.
Potential: first stop at $16, next exit at $11.
Colleagues, this is a long-term deal. This is not an ordinary trade within a day. Look closely at the instrument behavior.
There's an interesting paper in short on the horizon.
Yes, yes, despite the fact that shares of this company have grown dramatically in 2 weeks, I will be looking for a point of entry into the short.
And that's why:
1. In two weeks, the paper went up 104%.
2. If you look at the chart of the first week of growth - you will see the increased volumes, which were preceded by 5 weeks of position accumulation. The increased volumes in this case indicate the realization of the position.
3. The second week of growth - and again high volumes, but they are already fading.
4. The price went from 10.3 to 21.03 with no rolling back , i.e. 104%.
5. For further growth we need free stocks, which are usually accumulated either in the channel or in a counter trend. There was no movement in the channel or counter-trend in this paper.
As a consequence, the volumes that the big long player gained in June and July should already be ending.
6. The level 20.64 was formed on July 16. This is a strong level with TF: W.
7. We look at the nature of the break-up of this level: on July 20, the bar broke through the level, reached the price of 21.85, but then rolled back! The long player has no volume left for further hike up.
8. This rollback can be the beginning of a false breakout by two bars.
It's a safe scenario to enter the short:
Today's daily bar should open above 20.64, but it must close below this level.
Thus, it will form a False breakout formation by two bars.
The entrance is on the next daily bar, i.e. on Wednesday.
I'll set the Sell Limit Order at 20-30 points below this level.
The protective SL over the high of the false breakout.
Potential: first stop at $16, next exit at $11.
Colleagues, this is a long-term deal. This is not an ordinary trade within a day. Look closely at the instrument behavior.
Trade closed: target reached
Waiting for a false breakout by two bars.