The Reversal Trade
I've said it before and I will say it again, 2017 is all about big tech. Everybody knows this. We can easily see that Facebook, Amazon, Google, Netflix, Tesla and Apple have all put in monster gains since the beginning of the year.
So why are so many traders still trading poorly?
It's because they do not fully understand how to apply the many different setups they have studied to these momentum stocks.
Knowledge acquisition does not equal trading profits.
To win as a trader, not only do you have to know a setup inside and out, more importantly you need to know when to trade that specific setup.
Much like a carpenter would not use a screw driver to hammer a nail, a trader isn't going to pull out a breakout setup from his tool belt in a bear market.
When it comes to big tech, 2017 has been all about continuation patterns, remounts, pullbacks and reversals.
Our Facebook trade is a textbook example of all four of these setups aligning for a fantastic 5 day swing trade that netted close to $1500 on minimal risk.
The Facebook Trade and the 6 Key Things You Will Learn
In today's video, I show you the exact process we used to trade the reversal trade in Facebook. This was a trend continuation stock that pulled back hard off a gap down after hitting highs. The specific setup is the gap reversal trade.
Specifically, you will learn how to identify:
- Momentum stocks
- Continuation patterns
- Manage Risk
- Place logical targets
Swing Trade Service
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