Short-Sale Set Up - Follow-Up to FB
| Published: | 6 Dec 2017 11:14 ET |
A simple tool to time short-sale entries when you see a stock rallying up into an area of resistance like the 50-dma, for example, is to use the "620" five-minute intraday chart that Gil discusses in detail in the weekly VoSI live webinars. Basically, one can use a breach of the 20-period e.m.a. as an entry, and then implement a 1-3% upside stop, or, to keep things even tighter, a move back above the 20-period e.m.a. as an exit point if the position doesn't work out right away. If one takes the latter strategy, then one may have to enter, exit, and re-enter the short position several times before getting any traction. This approach can be used for any short-sale target stock rallying into potential resistance. For more details, refer to the live webinars.
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