It is important to keep in mind the overall patterns that such happenings may create. The truth is that chart patterns once observed, practiced and kept in memory do not change their behavior nor do they lie. So below I present an example of how to analyze the chart accordingly, showing what happened today with $AMZN. Amazon after announcing earnings last eve looked good for a breakout but this morning it presented a different face. My PlayList call to my subscribers was for a long position from 335-337-339 and short position from 332-330-328. Those who could trade it from premarket were able to take advantage of the high entry short but those who may have gotten to the table later and/or cannot trade premarket times, had a dilemma: If they entered at open were they chasing the trend or if waiting could they completely miss out.
The chart below shows how to analyze such occurrences and once seen, how one can play them. Patience as always is a major key in trading and this morning proved it once again; when analysis is clear positions are held on much more sure footing and therefore with more confidence. When a trader does not analyze but jumps without waiting for clear vision is when mistakes are made and trades can fail.
The quicker a trader can identify and analyze the trend the more he/she can take advantage. Remembering that, always with any trade, an "if/then" plan must be coolly followed for actualizing a successful trade because luck nor trends will always be a friend.
Happy Trading Living and Dancing
Anni
The Daily Pick - $AMZN
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