The current market is trading on technicals ( supply and demand) not fundamentals ( valuations). When this happens it’s usually time to shorten your trading system’s time frame to catch the moves before they catch you!
Shortening your time frame will give you the edge to finding the early entries and exits before the “herd”. Let’s say the short-term bias is to the upside. We want to catch the up move early and get out when it fails.
Akamai has been in an uptrend and recently hit the skids with the rest of the market. Yet it doesn’t look like a broken stock, but is one that may be just bent! Here’s how to trade it –
Use my method for drawing trend lines — this chart shows the up trend lines in white and the down trend lines in blue. Go long the next bar after a close above the white trend line. Stay long until a close below the trend line.
