|
|
|
|
|
|
|
Figure 13.3
Revival Sell
Copyright 2000, TradeCast® Ltd. |
|
|
|
|
|
|
|
|
How Do You Trade the Revival Sell? |
|
|
|
|
|
|
|
|
You set an entry point at 1/8 below the low of the last trading day (see 3 on the chart). This is to be certain that the old low has been taken out, which indicates that the sellers are ready and willing to move the stock lower. Remember to sell! |
|
|
|
|
|
|
|
|
You set your initial protective stop (IPS) 1 point above the entry point (see 4 on the chart). Remember, to get out of this trade you will buy shares back. |
|
|
|
|
|
|
|
|
You set your exit target at a point either 3 points below the entry point, or 50 percent of the average daily range below the entry point, whichever is greater (see 5 on the chart). |
|
|
|
|
|
|
|
|
Then you wait to see how the battle unfolds. |
|
|
|
|
|
|
|
|
See Figure 13.4 to track your results. The stock opened right at your IPS and began to immediately move lower. Once it traded at your entry price you executed your short sell. |
|
|
|
|
|
|
|
|
The stock continued down without any meaningful pullback (as you know many shorts will do) until it reached your exit target. As you see |
|
|
|
|
|
