By Barrie Einarson | Trade Ideas

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Hey everyone, Barrie here from Trade Ideas, and I want to talk about a trade that really, really worked for me — one that came straight out of my daily reversal scan that I’m absolutely loving right now. To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
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So let me set the scene for you.

The day before I took this trade, this stock had a massive move up. I mean big. But here’s the thing — and this is what caught my eye — look where it actually closed. It was selling off, selling off, selling off all day long, and by the end of the session it closed near the low of the day. Sure, it was still up a lot on the day, but that price action told me everything I needed to know.

When a stock rips like that and then can’t hold its gains? That’s a story. And the candle on the daily chart told that story loud and clear.

So when it popped up on my daily reversal scanner, I didn’t hesitate. I thought, you know what — I’m taking this short.

And man, did it ever work.

The stock went from $14.46 all the way down to $12.93. That’s over 10% — and what I really loved about it was how orderly it moved. Not too many wild shakes, not a lot of chop. Just a clean, steady grind lower. That’s the kind of trade that lets you breathe.

Now, what stopped it from going even further? If you pull up the daily chart, you’d have seen that $12.70 was a prior daily low — a real support level — and that’s exactly where it found its footing and stopped moving down. Knowing those levels matters. It’s what helps you manage the trade and know when the move is likely done.

Has it since popped back? Yeah, it has. But that doesn’t change anything. The setup was there, the scan flagged it, and the trade worked beautifully.

That’s the power of the daily reversal scan. When a stock has a big move but closes weak, the sellers are telling you something. You just have to listen.

More to come — stay sharp out there.

— Barrie