Organizing your efforts is key to profitable trading

gravitareasyguru8:19 AM Apr 23rd 2018

Organize yourself for the trading everyday

Everyday do the same thing over and over in a systematic manner.
Once you have a well thought out method the day to day challenge is largely about implementing your plan.
That requires setting up a daily routine and adhering to it as far as possible.

Situational Awareness

We know swing setups work, but overall market conditions can have impact on the % of trades likely to work. So SA helps you in controlling your trade pace. In good environment you want to be more aggressive. In bad conditions you want to focus on risk management.
Question you need to ask daily for SA:
What is your market bias today
Is there a plan to exploit it
Is there an alternative plan


Anticipation allows you to control risk and get in to setups early or as they are breaking out. Anticipation is also useful on current open positions. If you have thought through what you will do under different circumstances on your open positions you are in better position.
Question you need to ask daily for Anticipation:
What homework have I done to identify good opportunities ?
What are the 3 to 5 very high probability opportunities I must focus on today
What is my plan for existing open positions

What is working currently

Different phases of market favor different kind of stocks or setups. Some time beaten down stocks do well. Sometime stocks with momentum do well. Some time value or growth is in favor. Knowing what is working helps you focus on hot opportunities.
Question you need to ask daily for What is working:
What is working in the market currently
What stocks and sectors are leading the market currently
What style and setups are working currently
What kind of follow through is happening

The hardware and software

All our good plans or intentions or setups are of no use if our hardware or software fails or is not optimum for trading.
Are you setup for today
Is your hardware in proper condition
Is your software working without glitch
What is your backup plan in case of failure.

Your mental state

Your mental state affects your trading. If your are well organised and in proper frame of mind for trading you will be successful. If you are excited, harried, angry, disorganized you will find same thing in your trading.
Are you calm, excited, harried , or confused today?
Are there distractions likely to affect your trading today?

Continuous improvement

As a trader you need to focus at least 25% of your daily efforts on developing new trading setups and ideas and on enhancing your trading skill and knowledge of market. A purposeful plan to do this will cumulatively help you transitions in to new setups and ideas as market changes.
What is your plan for enhancing your market knowledge today
What is your plan for enhancing your trading skills
What is your plan for enhancing your trading mindset

What needs to happen for me to be a confident and in control trader

Do I have resources to get there?
Do I have the burning drive to get there?
Everyday using this kind of framework will make you a better trader . If you rigorously follow these kind of checklist you will see improvements in your trading in 90 days.


How to find good anticipation setups in 15 minutes or less

Good breakout setups: April18, 2018

Self derived knowledge builds a long term foundation to profitable trading

Self derived knowledge builds a long term foundation to profitable trading.

Your own understanding of markets and nature and magnitude of moves helps you build trading strategies and fine tune or change them when markets change. 

Much like any other field to become good at trading you have to study historical moves and apply lessons from that to current conditions. 

Studying immediate past winners tells you what is working in the current market  conditions and what kind of setups to look for to find those kind of winners.

This kind of study should be regular habit. It should be daily or weekly habit. That will ensure your understanding of markets and moves is current.

Knowing what worked ten years ago may or may not be useful, but knowing what is working in last one week, month, quarter or year is more helpful as it reflects current market situation. 

Markets and nature of moves change as rules and regulations, technology, nature and motivation of large players change. 

Historical precedent analysis is a common theme you will see in most successful traders journey to profitability.

Prioritising this kind of study is important. Lot of time we get caught in day to day trading and do not spend sufficient time on developmental work that will generate new setup ideas and help us to be in tune with the market.

I prioritise this kind of an effort at start of the day. First thing in the morning I obsessively study stocks that make 8% moves and 5 dollar plus moves in 5 days and study stocks up 80% plus from 52 week low, I study top 25 to 50 stocks up most YTD.  This is a daily habit. I spend around 30 minutes on this.

Doing this regularly alerts you to subtle changes in setups or market environment. doing it daily also helps you see new setup variations.  

 I focus my efforts on studying the timeframe and magnitude move that fits my trading goal. Those are the kind of stocks I want to be in next week or next quarter.By studying them daily, I remind myself of what works and what to look for in swing moves or longer term moves. 

When you do it over and over again you start finding small nuances to look for in successful breakouts or anticipation setups. The process also help to embed in your brain these setup patterns. Sometime while going through them you start questioning some of your own guidelines for selecting trades or you start questioning commonly touted market rules.

One of the best reason for doing this is it is based on actual past winners in immediate time frame. It gives you lot of information on what is working currently. Unlike that you see lot of commonly touted patterns are based on this that may have stopped working.

Most days it takes only 15 to 30 minutes to do this. Some days while going through them you find something and then it can trigger a deeper study. Then it can become a project to develop new trading setups.

In order to master a setup or an idea you need to be at it day in and day out. If you do it for few months , you see things others may not see , or gain insight others may not have. If you do this for six month on your own you will gain more insight in to markets and more importantly find very profitable setup and you will own it up as it is based on your own unique understanding of it.

Study these 8% moves closely to see how the move happens.

What was the setup before the start of the move

What was the 5 day action before start of this move

Was the stock up or down before start of the move

Was it near 52 week high or low

what kind of Trend Intensity it had

what triggered the move

what kind of breakout

How much was it up on first day of breakout

what kind of volume on breakout and pre breakout and post breakout

how did the move progress

what was the magnitude of move in first 3 days

and so on...

A daily effort like this cumulatively builds your understanding of the setup you trade.

In order to do this I run 2 scan for  bullish and bearish.

Bullish 8% plus or 5 dollar plus in 5 days

c/c5>=1.08 or c-c5>5 and minv3.1>100000 and c>=5

Stocks up 80% plus from low

c/minl252>=1.8 and minv3.1>=100000

Bearish 8% plus or 5 dollars plus in 5 days

c/c5<.92 or c5-c>5 and minv3.1>100000 and c>=5

Stocks down 50% plus from high

c<=.5*maxh252 and minv3.1>=100000

After running the scan everyday I study these moves. The first thing in the morning I review these candidates. Write down my observations, capture images of some of them, put notes on those setups and so on.

A daily study of past winners can substantially improve your trading. If you study these moves for 3 months you will discard lot of beliefs and often repeated phrases.

Above all it will help you focus your energy and help you make money....


How to scan for EPS surprise

Stocks with big earnings surprise make big moves in a year. Best way to find them is on earnings day , but if you miss that opportunity , you can still find them using scans in Marketsmith.

The above screen looks for stocks priced above 15 that are within 15% of 52 week high and 50 day average volume of 100000 that had an earnings surprise of 50% plus in last reported quarter  and also EPS growth rate of 40% plus.

If you run the scan today you will get 115 stocks.  90 stocks out of that 115 have had 40% plus move and 28 out of that have doubled.

Earnings surprise is one of the ways to find stocks likely to make explosive moves. If you are serious about making money trading add earnings based strategies to your tool box


How to profit from earnings surprises

Image result for surprise
Many of the biggest moves in any given year in market start with big earnings surprise or big earnings miss. 
We are currently in the earnings season and it is good time to look at stocks with big earnings surprises. They are likely to be future leaders in the market. 
Everyday hundreds of stocks release news before and after hours. These news releases can lead to stock making big move for the day. What you have to look for is extreme surprise or growth.

A massive earnings surprise on a stock with multi month base can lead to big rallies lasting weeks or months.
Focusing on "massive Earnings acceleration " will help you find 5 to 20 big ideas in a year that can make 50% to 1000% move.
In order to find such massive acceleration you need a structured approach to track after hours earnings news.
It should be efficient process which should only take 15 minutes...

How many of you would want to spend daily 15 minutes to find potential 50% to 100% move????

In order to do this successfully you need very streamlined process. If you just tracked these handful of links you should be able to find big winners periodically.
  1. Zacks Earnings : https://goo.gl/CsJviq
  2. Seeking alpha earnings news https://goo.gl/zkAKiB
  3. Earnings whisper calendar https://www.earningswhispers.com/calendar
  4. Earnings Whisper email summary : you need to sign up for this . it is free
  5. WSJ post market winners https://goo.gl/9ZYmW7
A blowout earnings stock will not be missed if you do this daily.
Besides earnings news other news can also move stocks , but earnings will give you most bang for bucks for your 15 minutes.

When big earnings  news is released either it is already discounted by the market or the market is surprised by it. The stocks can either go up or go down.
A heavily shorted stock on good news can lead to short squeeze. A heavily favorite of fund stock similarly on surprisingly bad news can tumble.
Announcement related to earnings in either as guidance or actual earnings have potential for starting or ending multi month moves.
This phenomenon is called PEAD or Post Earnings Announcement drift. It is considered a market anomaly.

In a perfectly efficient market a news should get discounted immediately and there would be no way to profit from it.

So let us say a stock releases significantly better earnings. If such earnings is going to lead to doubling of the stock, then at open it should gap up to the double price and there would be no way to profit from the new information.
But markets are not efficient. What happens is the new surprise gets priced in over time. This is what the PEAD phenomenon is about.

When companies announce earnings, if the earnings are significantly better or worse than market/analyst expectations then the company stock goes up or goes down for next couple of months.

 Post Earnings Announcement Drift or Pead is 40 year old discovery. Ball and Brown in 1968 first documented the PEAD anomaly in their ground breaking study that challenged efficient market hypothesis.
What does the study show. it shows that if you form 10 portfolios of stocks ranked by their earnings surprize then the portfolio of stocks that are in top 10% by earnings surprise outperforms the 9 other portfolio and similarly the bottom decile portfolio under performs the nine other deciles.
This is the most researched topic in financial field. Every year at least 50 new papers are published on PEAD and is persistence.
Stocks react vigorously to earnings acceleration.
After a few quarters of earnings acceleration, every one notices it and the reaction is more muted as the earnings get discounted.
While there is a vast effort by many speculators to anticipate such earnings acceleration and take positions in anticipation, even if you react to earnings and enter after the earnings announcement, you still can catch bulk of the move.

Typically first earnings acceleration is followed by more earnings acceleration or the improved earnings continues.

The structural factors which contribute to earnings acceleration do not disappear in one quarter. That is why earnings trends persist and price trends persist.

PEAD phenomenon is more pronounced in thinly traded stocks.

PEAD phenomenon is more pronounced in stocks with no analyst coverage.

PEAD returns persist even after one quarter.

PEAD is more pronounced on stocks with revenue surprise in addition to earnings surprise

While day traders look for one day moves on earnings day, for position traders or swing traders the PEAD phenomenon can offer longer duration picks.
After the day trading frenzy is over in these stocks , in many cases, they pullback and setup and go up after a breakout.
PEAD was relatively unknown phenomenon among retail traders around 6 to 7 years ago . Now everyone is aware of it and as a result many PEAD stocks tend to move big on earnings day often going up 20- 40% and then spend several weeks pulling back .
Buying after earnings is less risky as the news risk is out. However companies use the good news to time secondaries and this can lead to stocks with good earnings dropping aster few days of rally after earnings.
Secondaries for growing stocks are not a big problem as long as the money is used for expansion. Secondaries where the owners sell aggressively can be rally killer for a stock with excellent growth.
Buying after earnings is good strategy for position traders.
In a market driven by growth , you will find small companies offer best PEAD opportunities. In inefficiencies are greater on them.
When looking at earnings news, you also need to look at guidance. If the guidance is not in line with expectations, stocks can drop on earnings even if earnings are good.
Same way a stock with bad earnings will make big move if the guidance is good.

Larger companies are masters at manipulating investors earnings expectations through forward guidance and pre announcements. Genuine surprises on large caps tend to be rare. But when they happen they can signal significant shift in underlying business dynamics.

Best opportunity related to earnings is in small unknown company that suddenly starts growing rapidly.
When a small company with say below 50 million revenue starts growing suddenly in increments of 250 millions per quarter then you get explosive situation. This kind of growth happens in new segments or consumer products.
For a consumer product company with hot product , it is easy to grow rapidly as US has 300 million plus hungry consumers and if a product becomes hot must have product , it is easy for the companies to just plug in the product in existing distribution channel. Besides that most consumer products tend to have high margin.
For position traders finding such extreme growth situations should be top priority. A hot growth company if it takes off can make very explosive moves.
While such moves are not common in this market, there are market periods when such stocks dominate the market. This happens when new industry is being created.
Become an extremist
Look for extreme earnings growth (just starting out to grow)
Look for extreme sales growth (just starting out and of magnitude likely to make the company a billion dollar company)
Look for extreme price strength ( just starting young trend with explosive first leg)
Look for extreme neglect (multi year , low float, low volume

Look for stocks that breakout on 10 million plus volume on earnings on earnings days. That indicates big funds buying . Make a watchlist of such stocks.

One easy way to do this is  to scan for big moves in last 40 days on 9 million plus volume

sincetrue(c > 3 and c/c1 >= 1.08 and v >= 9000000, 40) >= 0

This scan will give you stocks that were up 8% or more on 9 million volume in last 40 days. After you run the scan you have to isolate stocks that had big earnings surprise.

For example ETSY out of this had very good earnings last season and then has been going up.

Similarly you can find bearish candidates by scanning for big moves.

sincetrue(c >10 and c/c1<= .92 and v >= 9000000,40) >= 0 and c>15

Will give you stocks that were down big in last 40 days. The scan looks for stock priced above 15 as shorts on higher priced stocks are better.

Again once you run the scans you need to isolate big misses and create watchlist.

If you are really serious about finding big winners and making money in the stock market keep a close eye on earnings surprises. Those stocks can make 300% to 30000% moves.

Related posts : 


Daily Process Flow April 13, 2018

How to develop your "own" trading setup

If you are highly motivated to make millions trading stocks then you need to develop your own setups. Buying picks from others or subscribing to newsletters is not going to make you money because you will never get as good an entry or exit as those broadcasting picks. Also you are not going to be having conviction in the setup.

Your best bet is to develop your own setups based on known setup ideas that work. Soone you start that work better will be your trading career.

Let us say you are a highly motivated new trader and read several books, blogs and have found some things that works. The next critical step is to put together a complete working method and extract millions out of the market using those methods while controlling risk.

Developing setup is stepwise process and involves iterations. Master that process and you will be able to afford anything you set your eyes on from your trading profits.Once you master that you can put together several systems or variations of the setups. Once you understand the steps involved you can create your own system based on what a market wizard says in an interview or any other idea you come across.

Many time Stockbee members or readers of this blog or traders I know share their trading setups and I study them to understand the basic design behind them. Go through several setups shared by members and you will understand how to put together your own approach. Many of these methods have unique tweak on entries , or exits or on selecting stocks. For example the bid back method is very clever swing trading method in terms of entry tactics by placing buy stops next day. Or if you look at @mysterytrader method it has very unique way to select stocks to trade . His way of selecting stocks increases odds of his trading setup working so well and that is why he was able to make that kind of money so quickly. 

If you study all the methods shared here and shared by others they all have common parts  like entries, exits, entry set ups, exit set ups etc. 

  • Vehicle Selection deals with which stocks to trade. This is very important decision and unless you have strategy for selection your other variables do not matter. 
  • Entries Selection deals with conditions that will trigger an entry
  • Exits Selection deals with where you will exit the trade.
  • Stops selection methods deals with how to put stops and move the stops.
  • Risk strategies deal with size of your positions, total number of open positions, use of margin and market direction filters. 

Think of these as lego blocks. Your task is to assemble them together in a functional coherent unit and make it work. In order to do this successfully in the beginning build your setup around someone elses setup that way you will have a template to deal with. Then modify it over time.  

Vehicle selection

We need some valid way to select the universe of stocks we would be trading. We want to select the most profitable markets to trade. Because market is dynamic, we want to do this process dynamically as against using a static framework.

There are many ways to do these. Professional traders use dynamic vehicle selection strategies based on momentum , volatility, range contraction or range expansion.

Investors use attribute based model to select stocks. Value investors look for attributes like p/e, cash flow, book value, discount cash flow. Based on these attributes they select the stocks to invest in. Growth investors select vehicle based on earnings , sales, or margin growth or combination of factor. Momentum investors select vehicles based on momentum or lack of momentum. 

You can choose vehicles based on attributes like market cap, size, trading volume, price, fund ownership, insider buying, year of IPO, country of origin, sector, short interest and so on.

Many of these attributes have been studied to death in last 50 years . There are many books published on these every year and most of the well known attributes that work are no secret. 

We should only select attributes for vehicle selection which will give us most profitable opportunities. 
There are potentially thousands of ways to select vehicles. Now this step is very critical because if we select more profitable markets to trade with then, we increase our probability of being profitable. 

Vehicle selection is also a function of time scale you want to trade. If you are day traders, the attributes you would look for in a vehicle will be a combination of high trading volume, clear direction, large intraday range and enough volatility to make potential trading profits worth the risk and expense of trading. Or it can be stock with immediate news likely to lead to volatile moves during the day.
Entry Selection
Selecting right vehicle is just one part of the equation. If you select right vehicle and enter it at wrong time you will have losses. 
Once we select vehicle we select entry method. What kind of entry we want to make on this vehicle. Breakout, pullback, scaled, timed , etc are some of the entry choices we have.

Some traders use breakout based entries. They buy based on breakout of N days. Breakout based entries are very popular and there are hundreds of tactical variations of these used by traders and investors.

Some use non breakout methods like pullbacks to enter. Again several hundred variations of this are used by traders. 

Entry-stop= risk. Closer is your entry to stop better it is and it will help lower your risk significantly. Look for entry methods that reduce your initial risk substantially. 

Again you can put together hundred way to enter a stock but the objective should be clear, to enter a properly selected vehicle at the start of a potentially profitable stage. 

Exit Selection
If you select right vehicle and right entry , your job is not over. You need to exit it at right time to be profitable. 

Exit strategy has multiple considerations. 

Your first exit is based on entry setup failure. This helps us protect our trading capital in event of the failure of entry signal. 

Our second exit is based on meeting our intended profit objective or at level where the trade has achieved its objective.
There is a false belief among many traders that exit is most important part of trading.

Exits are also dependent on your trading time frame and style. A day trader by very definition enters and exits a position in a day. Swing traders enter at start of swing and exit at end of swing. Trend traders exit on trend change. Value investors exit on valuation reaching their objective. Growth investors exit at first sign of growth slowdown or at peak growth.

As a general observation, I have found that professional traders tend to exit into strength while ordinary investors exit on weakness and often are way late on exits. 


Stops is important part of your trading mix and is used to enter, exit or manage risk.

Entry based on stops can help us enter a position at predetermined level  . The anticipation setup or bid back method does this.. Same way exits based on stops can help you exit at predetermined levels or at certain profit levels.

Stops allow us to control risk by avoiding catastrophic losses.

Risk selection

Once you have the above four elements of trading mix together, then you add risk selection to the mix. 

Risk selection strategies are designed to manage risk of capital loss, to avoid catastrophic losses, to manage open position risk, to increase returns by use of leverage, or to decrease volatility of returns. 

Your risk strategy determines how much you will risk per position. How many total positions you will have. What setup conditions will lead to you risking higher amounts or reducing risk. 

Your risk strategy will determine how much margin to use. For higher gains margin helps. That is why I use portfolio margin which gives me significant buying power. 

For exactly same vehicle , entry and exit one trader can make 5 to 10 times more profit on the trade if he risks bigger amount. 

All these elements of trading mix are equally important and needs to be looked at in totality. When all elements are properly put together, you have a working profitable trading system. The process is iterative and testing and back testing, and trading them in real time over years can help you fine tune each element of the mix.

Most of the effort in such designing is one time and after that you need to fine tune it from time to time. If you understand this process you can develop your own profitable method based on many widely known setup ideas. 

This is how most traders develop their trading methods. In the beginning they base their method based on someone else's ideas , but as they do more trading , they tinker around with several of the variables in vehicle selection , entries, exits, risk and in the process develop their own unique style. 

If you are serious about making money trading develop your "own' setups and this site has several tools to help you do that. 


Daily Process

If you are struggling with exits relook at your setup

The number one question I get on emails is about exits. Lot of beginner traders struggle with exits.

If you do not have a exit strategy it means you do not have a valid setup idea. Looking at exit strategy in isolation of setup is of no use. Each setup idea has specific exit strategy that works with it.

You often hear that exit is more important than anything. The person who wrote that is a book writer and not a trader. All elements of a trading setups are equally important. Often a sloppy setup idea is reason you are struggling with exit.

How many professional traders who trade for living and make money consistently you know who will say exit is most important. I have been in this business for 18 years and have made lot of money and talked to hundreds of successful traders. None believes that exit is more important than other elements of trading setup.

Exit is one of the element of a full setup. a setup consists of many elements and all those elements work together to create a full setup. All elements of setup are equally important. Setup has entry criteria. Setup has equity selection criteria which will define what kind of stocks to be traded using that setup. A setup has stop strategy built in to it. A setup has risk strategy built in to it, which determines how much to risk per trade. 

A setup is a complete package and it works if all elements work. A setup does not exist if you do not have an exit strategy.

A scalper by very definition of setup has exit strategy. He is just looking for small profit and scalpers sell as soon as their small profit goal is achieved and exit quickly if trade does not work.

A swing trader by very definition of setup has exit strategy. (entry at beginning of swing and exit at end of swing). Average duration of swings is days to weeks  and have magnitudes of 8% to 40% so swing traders plan their exit accordingly and what works for this setup is not going to work for other setups.

A day trend follower by very definition of his setup has exit strategy ( entry on trend change , exit on trend change). If your trend following strategy is based on defining trend as say entry once it crosses 50 MA, your exit will also be defined by some M A crossing. In tactics terms often that MA uses smaller time frame of say 20MA or 10MA as trend works in your favor. Now this kind of trailing exit is specific to trend following , you can not just hope to apply it to swing trading blindly.

A value investor has specific setup where he buys on undervaluation and exits on parity valuation to his model or on overvaluation.

If you don't have exit strategy, you don't have a valid setup. There are no universal exit strategies. Every exit strategy or tactics is context specific.

If you study professional traders who do  swing trading for living you will find majority of hem exit in to strength no matter their time frame of trading. While amateurs and struggling traders exit on weakness after allowing their profit to vanish.

Exit in to strength is the best exit strategy on the street for hundreds of years if you are swing trader. I use that for all my swing trades like 4% breakout, $ breakouts, anticipation setups and low threshold breakouts.

Professional traders exit in to strength while amateurs exit in to weakness. Professional understand the structure of market and are not bothered by leaving money on table when they exit in to strength. They do not regret selling early.

Amateurs are fascinated by trying to exit in to weakness or on pullbacks or on trailing stops for swing trading and it leads to frustration.

If you are struggling with exits relook at your setup.....


Stockbee Low Threshold Breakout (SLTB) Scans

SLTB allow you to find lower risk entries in stocks with established momentum on stocks that are having breakout whose threshold is lower than 4% Breakout or Dollar Breakout

SLTB breakouts are especially useful in building positions on stocks where you can buy on SLTB day and add on breakout day.

SLTB also works well on short side. Many shorts have weak countetrend bounce and after that they start fading , SLTB short scan helps you find that.

SLTB will help you get an entry with very close stop.

SLTB can be used on pre selected watchlist . I run SLTB without TI65 condition on IBD 85-85 list and IBD 100/19 scans.
SLTB Bullish Scan

minv3.1>=100000 and c>=3 and avgc7/avgc65>=1.05 and c>o and c>c1 and c/c1>c1/c2 and c1/c2<1.02
SLTB Bearish Scan

c1/c2>=.98 and c/c1<c1/c2 and c<c1 AND C<O and minv3.1>=100000 and (C - L) / (H - L) <0.2 and c>3

If you want to make money swing trading the SLTB gives you one more opportunity to find low risk entries.


Bounce continues offering some buy candidates

The gap down yesterday at open was bought and market spent rest of the day going up. Today strength continues.

Retail and energy stocks are leading the action .

MRO showed up on multiple scans early and since entry doing well.

CLR EHIC URBN LULU XOP are some other good breakouts as of now


How to setup Mark Minervini Trend Template

When markets undergo correction , this absolute momentum screen allows you to find potential future leaders.

Absolute momentum is better than relative momentum during corrections


How to setup Double Trouble Scan and chart template

Double Trouble looks for stocks that have almost doubled from their 52 week low. The basic concept behind the scan is anchored momentum.

The idea behind the scan is from two books Superperformance Stocks by Richard Love and How I made 2 million Trading Stocks by Nicolos Davas.

Image result for Superperformance Stocks by Richard Love

Once a stock satisfied the anchored momentum condition of doubling from 52 week low , if it forms a base of few months near high it has potential to breakout and make a big move. Failure to do so will mean a short candidate once base is broken.

Double Trouble is more suitable for longer term hold swing trades. It allows you to anticipate breakouts. This can be done over weekend and then you can put resting buy orders above the consolidation.

Double Trouble is also very good for finding shorts. Stocks that make extreme moves tend to breakdown after such moves and offer very good risk reward short trades. Fors shorting stocks that triple from 52 week low are best candidates. To short them you have to wait for them to breakdown and then short a countertrend bounce.
Double Trouble (DT) Scan


Double Trouble Sort column


Double Trouble Chart Template