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June 30, 2008


When To Short Failed Buy Signals

Filed under: Trading Patterns — Online Stock Trading @ 7:43 pm

Here’s a case today where the buy signal fails on the 5-minute chart. GG signals a buy signal. It stalls, and then breaks the pivot low.

gg-5-min-063008.jpg

I chickened out, but should have shorted this move. When you have a daily chart this extended, the probability of a failed buy signal are obviously higher. Supply and demand.

gg-daily-063008.jpg

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