The Russell 2000, a barometer for small-cap stocks, closed on it’s trendline support today. I trade the two Proshares ETFs associated with the index… TWM and UWM. The jobs report tomorrow morning should move the market. If there’s a gap, I’ll look for an entry in TWM, which is double short the Russell 2000.
Here’s an entry that presented itself in OIH today. Four bars pull back followed by three higher highs. That’s followed by a three bar pullback, which makes a higher low. That next higher high candlestick changes the trend , and should be bought. A second entry can be taken when the last pivot high is taken out. A third entry presents itself over the initial 5 minute high. That’s one way to trade it for an aggressive trader. Note that the 200 ma did little to stop the run in this case. Stops are tightened quicker by using a trailing stop system under the previous bar.
You could also just take the initial entry, and sell in thirds or halves. The pattern stays the same. You change the risk tolerance.
