Learned something today – Short on Nice Round Number

Short on Nice Round Number

Say a Stock is running on momentum from $3.20

The next stop will be $3.50, If it pass $3.50 the next stop will be $4.00, $4.10 or $4.20

If the chart is looking over extended and volume is fading and the news is not too good. Then you can consider about shorting above $4.00 and use $4.20 as the maximum stop loss.

What if the stock starts to run again? Cover with small losses or small profit and let it run again.

This time is will run to $4.50 or the next stop $5.00.

The ideal trade will then be looking at the charts and Technical to see whether $5.00 can be the top. If there is a double or triple tops (Volume fading, Top MACD turning down, Fast STO reversing). They it is safe to consider shorting it around $5.00 with stop loss just above $5.00

What to do next? You have 2 choices:

1. You can consider locking in profit on the way down.

2. Hold it until you see people starting to cover and the chart is reversing.


Timothy Sykes profit.ly profits


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