This is why patience pays. It looks like we will probably have a chance to establish the AMZN short or add to or filling out phased in positions; at better prices.
I'm not posting the longer term charts that are negative and that's here the high probabilities are, that's strategic, we've established that, we are now looking at tactical, actual entry so that's what we'll look at.
Again, full disclosure, I have a higher tolerance for risk than most, but I also try to follow strict risk management rules even with that higher tolerance. I would have no problem shorting AMZN right here, we're just looking for the best price, the least risk and best timing.
Take a look...
The AMZN5 min negative leading divergence is basically our target, we want the intraday 1-3 min charts to go negative and lead negative like this, that's when we are most likely at the highest area we can enter AMZN short.
The 1 min chart went negative at the head fake break out highs as the longer charts (higher probabilities) suggested would happen. Since then on the correction to the downside (and remember, every time we cross above or below that area, there's money for Wall St. to make on orders to buy, sell, short or but to cover) we have a weak relative positive divergence and AMZN is turning up intraday from there.
The 2 min chart is leading a bit intraday and we want to se this go negative in to higher AMZN prices.
The 3 min chart is where AMZN is about in line. Two things could happen, "if" the 1 and 2 min/ intraday positives were strong enough they could swing this 3 min chart from in line to positive. The second is that the 1 and 2 min charts are as strong as they will be and just deteriorate from here, that would take the 3 min chart from in line to a more negative position and possibly make the 5 min worse giving us a more hollow shell in AMZN's price, a better short entry.
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