GOOG Charts & Trade Idea

Basically the GOOG Core short position was a half size position that I was looking to add to, I'm more thinking along the lines of just re-opening the whole (full size) position at higher prices and book the +15% gain from the Core position just closed.

In essence the idea of the position is very simple for GOOG... It's an initial stage 4 Volatility Shakeout, you can even view it as a H&S neckline break shakeout (of new shorts).

This is the 1 min intraday positive, I'd never close a core short or any trend-based position because of an intraday 1 min chart, but this lets you see that GOOG looks like it's finding its timing for a counter trend move or shakeout as an important support area was breached like the break of a H&S neckline to the downside.

The 5 min chart looks pretty good, I still wouldn't close a core/trend position because of this, but I would consider this for a long trade along the lines of a bounce if it stopped at the 5 min chart and the charts from 1-3 min. were also positive.

 This is a 15 min leading positive divegrence, I "may" consider closing a core short on a chart like this, but there would have to be other circumstances and those can be found on the very next chart...

I haven't verified GOOG as a H&S top here with volume analysis because it doesn't really matter, an important support or H&S neckline was broken on heavy volume (red arrows) moving GOOG to stage 4. We know that one of the first things that happens when an asset moves to stage 4 in a very obvious way and in a popular asset is new shorts come in to the asset and Wall St. delights in shaking them out and essentially stealing their positions at better prices which is basically what I'm looking to do and what we are usually doing in following 3C signals. Today's daily candlestick looks a lot like a possible bullish Hammer (reversal candlestick) , it's not quite there, but could be by the close and its the psychology of the candlestick that matters, not the exact textbook definition. Also volume is higher, again, it doesn't need to be a lot higher than Friday, but we do want to see higher volume as that increases the probabilities of a reversal candle working.

In yellow I drew in an area that would be a likely target because it nullifies the lower lows/lower highs that traders look at in defining a trend which creates demand which can easily be sold or shorted in to.

So if you like the idea of a quick GOOG trade (long), that's probably a pretty reasonable target to use to calculate your risk management.

As far as the Trend Channel, there are larger trends in GOOG, but I'm following the most recent volatility and character with a 2-day TC chart which would put a stop above $561.50 on a 2-day candle, not intraday, but on a closing basis. I don't think that really matters too much if you are looking at a possible long position here, it may just tell you where to tighten up your stops, otherwise I'll just be watching the 3C chart and setting soem price alerts to remind me and look for the next entry in GOOG (short) as a core/trend position, it has the longer term charts to support a trend short.

For those who recall the 3 places I'll short a H&S top, this would be the third and last place before stage 4 moves to a new lower low and we are solidly in the stage 4 decline.