Hey GL, Well I dont have a set shorting technique, but the way short plays appear to me is quite simple. I short weak stocks on overbought positions. Usually 1000 share lots and am seeking usually 40 cents intraday and if I dont get that I would let it carry overnight or for a few days. One prerequisite prior to my short entry is also how do I feel the stock will do in the short to intermediate term. Whats my prediction on the future outlook(months) of the stock. Is it foreseeable that the stock will drop a few points in the long term. So if in a case my trade goes against me, I would still be willing to hold long-term until it profits. My win loss ratio is incredibly high. You've commented on my journal, its up to 10 straight trade for winners, all short sells. A simple short system that can easily be set up, backtested and refined to your trading style could be as follows. Tally up the stock last five HOD(high of day). If during your trading day, the stock hits that price plus another 10 cents, short it. The stock should then drop a half a point or more within the day or the next serving as a "small correction". Market conditions as a whole should also be taken into considering prior to opening the short position. I dont follow this setup to the science but in similiar fashion and it has serve me well. But then again, I trade higher volume than you and am only seeking 0.30-0.50 or will let me profits run if opportunity arises. Good Luck there bud.
By flipping the Y axis you are simply gaining perspective. If a long looks like a good short when flipped, then it's probably a good long...and vise versa...... Dave