Waterfall play today

Alright guys, here's a good pattern for you to learn, I call it the waterfall pattern.  Basically a waterfall is exactly what it sounds like, it is a hard sell off on good volume and you look for a bounce.  Generally these plays are better for quick scalps, but they can also reverse into a longer trend.

On this chart, CF, I bought in around 11:45 as those two bottoming tails touched the S3 line. A lot of times, you'll see a quick reversal and explosive move back upwards, but it just depends on the setup. This one gave a quick move, then slowly paced its way upwards all day.

Quick chart from this morning

Alright guys lets give this a shot here.  First post so show one of my favorite setups from this morning.  This play comes about as a stock gaps up, then retraces back some but doesn't break down. I look to play these on the break of the previous 5 minute candle's high.  As you can see in QCOM this morning, it gapped up, then put in three more candles all with lower tops. This also happened just as the price touched a pivot line which tells me there is resistance. So the play is to buy the break above the previous candle's high. As you can see, it worked out nicely. Something else to note on this one is the sell points. You're gonna want to take profits as it runs into resistance. Look how it stalled some at R2, then actually reversed once it reached R3, this is when you want to take profits guys, sell points can be just as important as buy points.