Hello all, TIBX was on my blog watch list with 26.50 alert for last few days. I will be dissecting the trade today and show you one of the many ways we can trade the price trigger.
1: Alert triggers at 26.50, as you can see by the time it hit the alert, stock is too extended, no base, nearest 9/20 EMA too far away. Do i jump into this trade? No.. as people who bought this lower will scale out some position to me and off course the stock pulls back.
2: Wait for a base, as the stock starts to flag as the rising 20 EMA catches up. Notice that hammer tail on 20 EMA.
3: I bought this at 26.47 on a flag break, with stop right below 20 EMA 26.35, risking only .11c for $26 stock.
I sold 1/2 position at 26.72, given how sloppy Market action was today. Its only .25c gain for a $26 stock, it should have gone more, hence I am bit cautious at the Market action. I am writing this post to show you how one of the many ways you can trade an alert. Hope it helps.