Amen! Ive been shorting stocks intraday for the last 8 trading days in a row and all 8 have been profitable. But im not looking for major reversals, just waiting for the momentary pause and exastion in a runup before it consolidates and moves up again. If you dont get greedy you can make ok money with low risk.
Very good strategy especially if your commision is low. I usually open a small position after all of the momentum guys rush into a stock when it breaks a new high. Then start adding to the position at about .10 increments IF volume on the up periods tapers off and increases on the down ones and the OS indicators are confirming the exastion. This allows you to be in the position prior to all the momentum guys bailing out with their profits and looking for the next trade.
I do agree with building a position, I do not understand how can one consistently pick exact tops/bottoms on the other hand. I doubt it's possible.
I am agree with 5Pillars. Bottom takes a longer time to form, top doesn't always the case. Top picking is harder than bottom. Happy to see his contractive posts.
You don't now for sure when building it. It is like building a boat, you do the best you can with what you have, and when you are all done and committed you go see if it will float....LOL. You get to find out if it works AFTER the fact of building it.
One other very favorable factor of being near a top or bottom is increased volatility........so far I am getting almost twice as many trade signals the last several days than before (I like that).
Same reason people pick bottoms. Because, if you can do it, there is no better risk/reward in the market.