BIDU Trade Idea follow Up

Yesterday I updated BIDU which we have been watching a a potential head fake trade is off to an interesting start this a.m.

 Here's the large triangle in BIDU, triangles this big are NOT consolidations and most often are tops or bottoms depending on the preceding trend, which was up, making this a likely top, but as we see 80+% of the time, there's almost always a shakeout and head fake move before a reversal (this is true of almost any timeframe).

 The suspected head fake move out of the triangle is in the yellow box, in the white box we see a Harami/Shooting Star reversal candlestick pattern which was confirmed yesterday on a bearish engulfing pattern. While I have suspected some volatility today, it seems the suspected  head fake move is being confirmed. The general rule as one of my friends puts it is, "From failed moves come fast moves". In other words, the break out from such a large triangle draws in buyers which allows Smart money to sell/short in to the strength, when the breakout fails, longs are trapped, a bull trap and their selling as BIDU moves lower to put them at a loss, increases supply as they sell, moving BIDU even lower faster causing more to sell and creating a snowball effect. For this reason and our ability to generally differentiate between a real breakout and one that is moving up in to a negative divergence, these tend to be some of my favorite trades.

A move below $140 on volume should confirm the head fake and set sellers in to motion.