Hey everyone, Barrie Einarson from Trade Ideas with today’s edition of What Makes This Trade Great? To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
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A little bit of a different take today, guys. I just haven’t been seeing a lot of great trends lately in those low-float, highly volatile stocks. It’s been that way for at least a month, so I’ve shifted more of my attention toward larger-cap stocks and some different setups.

One of my favorite scans for finding these opportunities is the Trend Reversal Scan, and WRBY (Warby Parker) gave us a great example.

Take a look at what happened over the last few sessions. The stock had finished up at least 5%, but the following day it broke below the previous day’s low and closed near the bottom of its range. That created a really nice short opportunity.

But today, we got the exact opposite.

After closing down at least 5% yesterday, WRBY completely reversed direction. Once the stock moved above the previous high, it turned into a beautiful long setup.

That’s exactly what I like about the Trend Reversal Scan. It can help identify stocks where momentum may be shifting dramatically from one direction to the other.

When one area of the market isn’t giving you the setups you want, sometimes you have to adjust what you’re watching. Right now, I’m finding some interesting opportunities by focusing more on larger-cap names and looking for these strong reversal patterns.

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