We love to play reversal candles in
the form of hammers and stars. A hammer is a candlestick that starts
off low and forms a panic selloff and recovers back most of the selloff. The
tail should be at least twice as long as the body. Hammers in conjunction with
stochastics crosses back up make up very nice reversal patterns. We like to
confirm the reversals utilizing multiple time frames.
This was the case when we played (SNDK | Quote | Chart | News | PowerRating) LONG. The 13 min
chart showed a solid hammer bottom. The 1 minute stochastics gave us a nice low
band entry trigger at 54 at 10:25am as the 3 minute stochastics also crossed up.
We rode the longs into the 3 minute upper bollinger band overshoots to lock the
54.65 exit into the final 1 minute hi band mini pups, out + .65.
The markets are setting up weekly mini pup breakouts to the
upside. The DIA weekly support sit at 113.20 with upside to 116.20. Expect a
choppy ride.
Good trading gang!
Jea
Yu has been involved with the equities markets for over 10-years. He specializes
with intraday trading in the U.S. equities and futures markets. To receive a
free 7 day trial to Jea Yu's Underground Trading Pit,
click here or call 888.484.8220, ext. 1.
