The Pinball Set-up Strategy
Imagine that you are at a pinball machine. You grab the plunger, pullback and the silver pinball falls back against the plunger paddle. Then you let go of the plunger and the silver pinball catapults up and away from the plunger to hit various targets or bumpers. The pulling back on the plunger builds momentum for a brief opposing move. The bumpers are resistance areas as the silver pinball moves higher. Eventually, the pinball loses momentum and falls back. This visual is the basis for the Pinball Set-Up strategy.
The Pinball Set-Up strategy is a short term counter trend stock trade that usually lasts for 2-5 days. It occurs during a significant downtrend and when selling is exhausted after a down move. Buyers then step in and take price higher. As price approaches the predefined target, traders take profits and price usually resumes the downtrend.
With this strategy, following the rules for the trade is extremely important because you are trading a bullish pattern in a downtrend. In this book, the rules are clearly laid out so there is no guesswork involved. You will learn where to enter and exit the trade as well as where to place your stop. The Pinball Set-Up strategy is one of the most profitable strategies in my trading toolbox and I am confident that it will be for you but only if you follow the rules.
The Pinball Set-Up strategy is very popular in our trading room. After reading this book you will clearly see why. Using the rules, the Pinball Set-Up is easy to spot and easy to manage. Of course not every Pinball Set-Up is profitable. No trade set-up is profitable every time. Over time and by following the rules, you can increase your trading successes and gain confidence in the Pinball Set-Up.
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