I have one category designated for the main trading patterns I use in my trading, but thought I’d add a single page in my “About” section, as reference for the trading patterns too. This trade in HANS will be added to the new section.
HANS – Hansen Natural Corp., was a trade Friday that was a combination of two patterns. The first pattern is one in which the stock closes near the low of the day with a fairly long candlestick, but opens higher than that candllestick the next day. The second trading pattern is a higher high candlestick after a 3-5 day pullback. With both patterns intact, this online stock trader watched for intraday entry on the 5-minute chart. The first entry came after the stock pulled back, and then traded a higher high. It’s never smart to double down on a loser, but doubling down on a winner is completely acceptable. A second entry could be taken over the intraday high at that point indicated on the 5-minute chart. Use trail stops, pivot stops, and selling in partials based on risk criteria.
