My next two trades were in EBAY which I found gaping up this morning and confirming a 1234 pattern on the Daily chart. I took the first 15 minute buy setup which looked text book, but it was at the 8 ma, I usually won’t take these but the market looked as if it was going to breakout again. Well at 11:40 the QQQ shook out and with it went EBAY crashing to the downside, ouch! I knew it was a shake out and had good chance of recovering which it did, but I hesitate on my entry. I finally re-entered the play after price had moved above the 20 ma on the 5 minute chart. I was able to place my stop below a bottoming tail that had formed and it helped me weather a pull back in price, then EBAY took off like a rocket hitting my first target at 52.50 before putting in a small red type doji bar on the 5 minute chart. By this time I was managing on 1 minute pivots which price finally took me out of the play at 52.43. Not a bad play but typical for a rough week of trading after a long Holiday week. Here is the chart on my play in EBAY…
