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The smart sell is just the reverse of the smart buy, as you certainly have guessed by now. Look at Figure 13.11 to be sure that you can identify the setup requirements and the pricing points: |
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Verify that the buyers have been in control for at least three days and that prices have been rising steadily during that time. That lets you know that a lot of these buyers may be ready to take some of their profits . . . in other words, to become sellers. |
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Set your entry point, IPS, and exit target. |
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Then look at Figure 13.12 for your results. What a fun trade this was! The stock opened above your entry point and traded even higher for a short time. Then the sellers started to sell, driving the price sharply lower to your entry point, where you executed your short sale. You exited at your exit target for a gain of 4 1/8 points. This is a situation where you are glad you exited where you did because buyers came back into the stock at the close to drive the price above your exit. |
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Figure 13.11
The Smart Sell
Copyright 2000, TradeCast® Ltd. |
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