“On Friday, Apple opened with a 3-point gap down from the 441 close on Thursday to open at 438, and it quickly went down to bottom test at 432, a well-established support level shown on the daily chart,” Tom Lloyd Sr. reports for MarketWatch. “This enormous sell signal in price and volume on the open tipped off the daytraders to short every pop-up in price on Friday.”
“It happened three times on Friday, enabling daytraders to coin money on that initial sell signal on the open by selling at every test of resistance,” Lloyd reports. “Supply was in control on the close Thursday, continuing on Friday, and it showed its ugly head on every bounce up as seen on the five-minute chart.”
Lloyd reports, “This turned out to be a daytrader’s dream because the opening sell signal was true and enabled not just one trade, but three profitable short trades every time price went up to test resistance… Most daytraders would be happy with just one good trade and here there were three trades following the very same pattern.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “David E.” for the heads up.]
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