Another drop and pop back to the original trend. cover the shorts and go long. 1/2 hour until end of day.

SRS

SKF

FAZ

Momo looks to have ended for now so it's a good place to take profits and either trade them the other way or find some other plays

SRS

SKF

FAZ

Another trick to use

Another arrow in my trading quiver is to closely watch the 5 minute clock. In this instance SKF SRS FAZ have been in an extended uptrend all day. Going into the afternoon session the momo slowed down and they started to drop.I sold the longs and went short. The coresponding volume rise in the markets was minimal so it said to me that a quick drop then a pop back to new highs was a greater probability. The trick is to feel/see  the momentum change right when a new candle appears. I  covered my little shorts and went long. The risk is minimal if I'm wrong. If I'm correct then I've gotten a good jump on everybody else.

First chart is FAZ.

SKF

SRS

Momentum and high probability charts

The following two posts demostrate why the combination of momentum and high probability charts are a preferred way to trade. Knowing from past experience that charts like this have a better chance of a profitable trade than something that is jammed up or choppy, it's easy just to follow your trading plan. Make an entry , set a stop and let the market momentum take over until it exhausts itself. 

The key is truly believing in the probability.  I never think I know what it will do. I acknowledge what it is more likely to do and trade it that way. I always protect myself from the unknown forces afoot in the market by deciding on where my buy or short decision will be proven wrong though. Many times a perfect "A trade" set up will fail just as easily as an ugly dog set up.

Charts continued

Here's where the earlier charts ended up a short time later. As always take the $ and trade them the other direction. Will the trends continue later? I don't know. Better to be ready for anything.

FAZ stalled , shows doji like candles. Time to take the $ it's showing you

ZION gives a $1 in 5 minutes, you'd have to be nuts not to take it.

SKF shows same chart as FAZ

JPM drop has slowed and shows a little green, again time to take what it's offering you.

SRS just like FAZ SKF

High probability chart patterns

Some charts this morning are showing classic high probability patterns and continuing their trends. Trading these patterns with the market momentum is very low risk.high probability. 

FAZ breaking to new highs.

ZION rolling over. Note all other bank stocks were making new lows at this time. SO waiting for this to roll over can pay off huge.

SKF making new highs

JPM making new lows after consolidation

SRS ramping up in a trend continuation.