Intraday Trend Spike
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This occurs when you have an explosive bullish move. It appears to
work best when the momentum begins after the open and continues
for an hour or more. The last three or four 5-minute bars show large
intraday high-low range. At point A in Figure 5.17, the price has moved several dollars and statistically should retrace 30 percent, or
the time distance of three 5-minute bars—in this case, to the low of
the price bar marked 10 minutes. When using this technique, it is a
good idea to know the average price range for the stock on bullish
days. At point A, look for the market to begin showing signs of weakness.
While you still have an uptick, short the stock. Figure 5.17 gives
you a visual image of what an intraday trend spike trend looks like.
Knowing the stock's personality is important, and this comes with
time and experience. You will see this pattern over and over again.
This occurs when you have an explosive bullish move. It appears to
work best when the momentum begins after the open and continues
for an hour or more. The last three or four 5-minute bars show large
intraday high-low range. At point A in Figure 5.17, the price has moved several dollars and statistically should retrace 30 percent, or
the time distance of three 5-minute bars—in this case, to the low of
the price bar marked 10 minutes. When using this technique, it is a
good idea to know the average price range for the stock on bullish
days. At point A, look for the market to begin showing signs of weakness.
While you still have an uptick, short the stock. Figure 5.17 gives
you a visual image of what an intraday trend spike trend looks like.
Knowing the stock's personality is important, and this comes with
time and experience. You will see this pattern over and over again.