What I love about Falling Wedges is that the pattern can set up and deliver very reliable outcomes on many time frames, whether it's MONTHLY, WEEKLY, DAILY, 60, 30, 5 or even 2 minute charts as you'll see in this case.
For this ZBRA trade, it was flagged on my Finviz scanner as an Earnings Gapper. ZBRA gapped up after announcing good earnings. Once that happens, I start looking for intra day pullbacks off the open(Via a FALLING WEDGE pattern preferably).
Saw the initial Wedge using the 2 minute charts of ZBRA. Stock started to narrow at the bottom of the wedge, took a small size position of 500 shares at $60.97 ..... stock responded positively almost right away and started climbing, sold it at $61.43 .... A quick 50 cents gain(or $250 profit) in about 30 minutes.
| 8/9/2016 11:03:41 AM ET | ZBRA | Sold 500 ZBRA @ $61.439 |
Executed
| |
| 8/9/2016 10:37:15 AM ET | ZBRA | Bought 500 ZBRA @ $60.9692 | Executed |
Hope this helps you in your trading !
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