Failed Follow Through
An overextended stock that pushes in the morning, pulls, and fails to continue.
What it looks like
A stock pushes out the gate and hits a prior key, then pulls hard. The stock then hits a mid-point for an entry, then continues failing. Thus the name - failing to follow through.
Entry
Enter on the mid-point of the pull, or when the stock continues to break down.
Where I'm wrong
Your initial stop out is near the high of day (HOD). Once confirmed, the next stop out is if the stock clears and holds the mid-point.
Targets
Generally, holding to VWAP is ideal. Goal is 4:1 risk/reward. If you're feeling randy, you can hold for a key line below VWAP.