We all know that it’s not easy to have an A*setup. To have an A*setup you must have tracked for months or better for years and in different times of market/bear & bull to know when they are effective or not.
I play often the “failed push and sh the fail of 72/89 with supp break.
The first thing I want to look on the chart is:
gap down on earnings miss or bad news
Once I found my stock, I need to see: range/volatility and liquidity. These are the 2 main parameters that you need to make money out of a stock. Without these 2 parameters you trade won’t work.
I then start to see for a morning failed push and small lateral consolidation after this failed push. This basically tells me that bids/longs are in standby, that they are not that strong to push above the morning resistance. When short sellers will get into the stock and crack the first support, the game is done. Panic will occur and dump.
Watt pic below (right click to enlarge it)
Nflx pic below