Hubert Senters here.
Let’s take a look at Dollar Tree massive gap up. It’s had actually two of these bad boys. So we do a video on the other day on double gap or double breakaway I should say. You’ve got one breakaway, two breakaway, three breakaway. Now, one thing you have to be careful in this. Sometimes you can get what’s called an Island Reversal.
It’s actually a term believe it or not. An Island Reversal means this thing is going to come up here. And then it’s going to reverse back and go the other direction. Let’s say that tomorrow you get like a candlestick that looks like that.
And then the following days you get one like this. That would be called an Island Reversal if you get a gap away from the price action. And then it reverse backs and tries to come and haunt you and kill you.
I don’t think that’s what’s going to happen here. But you do need to be aware of that. Right now, it acts like it’s got a nice little momentum, good little thrust to the high side. If you’ve missed bracket one, bracket two, this is your third also be careful about the time. Something happens three times in a row the entire world knows about so it may be the last one so be careful.
Potential long if it breaks out $99.78. Potential short if it breaks below $94.90. Just be careful on it.
I like the set-up but sometimes it can be an Island Reversal so just be on the lookout for that.
Overall though, it looks pretty strong. Mark Helweg is going to be doing another webinar Friday, May 29th which is tomorrow at noon on his ‘Simple Blue Dot-Red Dot Trading Strategt for Stay-at-Home Traders.’ I will HYPERLINK you to the registration page.
Good luck. Hope it helps. See you on the next video.
Hubert.
