Intraday Technical Short Set -Up
Trading means buying and selling. There is always two sides on each trades a buyer and a seller. A trader buy/enter a position simply because it sees an upside rally to profit from the trade, when a trader sell/ exit or sell short a position it sees an overhead resistance or believes the stock rally has run its course.
BIDU is a perfect sample of Intraday (* intraday means occurring within trading hours*) Technical short set -up. We used a few technical tools on the chart, simple moving average to derive the pivot levels, rsi and macd. For intraday trades, what matters the most is pivot level, nothing else.
BIDU has struggled at 238 level in the morning, then printed higher low support, and once it recaptured the 238 level or (50 dma) it has printed new high of day to 239.16, however after reaching that level, it has struggled to hold it gains, in fact it has attempted to rally twice after hitting 239.16 high, as per noted the 2 lower highs, upon breaking the 238 level, sell signal triggered and it closed on lowest level of the day. If you aspire to be a daytrader you must train your eyes to recognize pivot level of support and resistance.