I saw the CECO news story pre-market and that put it on my radar.
It was then simply a matter of waiting for it to start falling, pause, then pounce as the sell pressure strengthened again, then exiting when the buy pressure strengthened and the sell pressure weakened.
This is what I call micro-analysis of the tape - buy/sell pressures, actions of different participants, level 2, T&S, momentum.
It might sound difficult, but think of charts as being maps with sections missing, news being radio road reports. It really isn't any more difficult than learning to drive then after some experience travelling on four lanes of the M25 in heavy fast traffic. Do the job properly and avoid the idiots on the road.
That's the way I scalp, anyway.
Longer intra day swings like that $6 profit in GOOG are different because the micro-analysis isn't strictly necessary, but does help and confirm timing.
Reading the market is like reading the road and anticipating what happens next.
With this type of approach you are not concerned with getting it right every time or getting the most every time you trade, you're concerned with consistently taking money out of the market day after day; sometimes a modest amount, sometimes a medium amount, sometimes a lot. Suits me, anyway.
Richard
