Strategy Description: Stock is in a strong uptrend, ideally quite parabolic. Come in the morning and it's gapping up; can be fluff news or even substantial news (remember it has been parabolic on daily), or no news and just a simple pattern. In this case the company picked up an upgrade from Goldman and was gapping up nearly 1ATR (little bit ridiculous!).
Now the problem is you really have to step in front of the price action and just short the shit out of it. The strategy for entry is to use size to your advantage and be offering on the way up scaling. Then as the top confirms add size against the peak. In this case can see it did have an opening spike; so you want to be offering so that you are at max size about 1ATR from the opening print (this means on a small spike you will be about 1/4-1/2 size).
This can easily turn into the day it has a large pull so you want to hold a little bit and trail stop-loss for that. However; you should be covering most into a gap fill/ on the way down, because after all the stock is within a strong uptrend and if it does downtrend all day will likely be offered an opportunity to reshort.
Daily:
Intraday:
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