There are a few plays that will test the abilities of a newer professional trader and my trade in CTSH did just that. I found CTSH on my daily pivot one list to go longer but price gaped down so far that I felt that CTSH was done for the day as a long prospect. Price action did something that is very bullish, it filled the gap and stayed bullish and is what we call a “gap the bullies”. As suspected, price finally broke out long after basing and as price actions started to pull back I started to buy a few shares on the way down. I was looking for the 2nd move long in CTSH but as I added shares using the 1 minute chart on every wipeout of a red bar, price started to accelerate downward. I had a very small share size but price was already near my dollar stop and as price moved past the last pivot low I was forced to take my stop. With in just a few minutes price put in a nice bottoming tail at major support and popped upward. I soon re-entered the trade recognizing that this price action was more of a shakeout and not a change in trend. I was at full share size and now very confident with my trade in CTSH then I walked a way from my computer for just a few moments to come back to OMG, price was below my stop out point and my P and L was over my risk unit, OUCH! I gathered my composure as price started to move upward again, I realized that I had just had another shake out… Wow, I almost doubled my position feeling confident even more now that I was in the right direction. Price action aggressively moved upward and I finally was able to move my stop to a break even point and finally, calmly I watch as CTSH moved up 3 R’s where I finally sold my entire lot. Total profit of 2 R’s on the trade after the stop out, I had my weekly goal in, I’m done! This is what I call the ole, shakeout, breakout, pull back go all out play!
CTSH 2