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| Day shorting requires more precision than position shorting. But the technical analysis is actually simpler. The shorter time frame reduces the impact of investor participation, so the trader can concentrate on S/R, trend mirrors, classic patterns and range bar examination. Choose your entry the same way as you do with longs. But you need to control risk by placing limit orders to get fills on the uptick and watching second-by-second so they can be withdrawn if the tape turns sour. Use multi-day intraday charts whenever possible and get defensive during the first/last hours. Squeezes are far more likely here than midday, due to the higher volume participation during these segments of the market day. |
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