Here is an example of a short term setup in the stock 3 D Systems ($DDD, $78.09, off $2.38). The recent pattern on the 30-minute chart is one of higher highs and lows and if price can hold above the $74.40 swing low, then I like the buy side of this one against either of the two price cluster zones illustrated on the chart below. I have potential support at the $76.86 – $77.58 area and the $75.29 – $76.17 area. If you see a buy trigger against one of these zones, it’s worth placing a bet on the buy side with your maximum risk below the $74.40 swing low. You can also define your risk below the actual price cluster zone.
If the most recent low remains intact ($77.54 earlier today), target one comes in at the $84.04 area. For this shorter term setup, you may want to use a 3 – 5 minute chart as your trigger chart. For more informations on triggers, please refer to: