Even though it’s possible to make $500 or more in just a few minutes, We know better than to try to initate trades in a $700 stock using buy- or sell-stops. Typically, we are looking to reduce entry risk to relative nickels and dimes using Hidden Pivot ‘triggers.’ Unfortunately, that won’t work with very pricey stocks that can leave gaps of $2 or more between ticks. It turns out, however, that the ‘mechanical’ entry technique is perfectly suited to getting around this problem. Check out the material toward the end of the recording for real-time examples involving AMZN ($751) and PCLN ($1503). There is also some material that demonstrates how very useful ABC patterns can be for reading the stock market confidently and accurately intraday. In this case, when the Dow was up by nearly 100 points, it was possible to infer that buyers were spent and that stocks would close lower on the day — which they in fact did.
