PACB was an excellent trade for me last week. I had stalked this one on daily and weekly charts but I love the 5 Min chart for an entry.
A common mistake when a stock breaks out is to chase it. But almost always that first move finds an immediate selling pressure. PACB actually dropped 5% from its high on the first candle within the next 15 minutes. I'm sure there are some frustrated traders out there who got stopped out only to see PACB rip the rest of the day closing up 19.24%.
A little trick I picked up using the 5 min chart prevents you from chasing. It's very simple, wait until the 5 min chart first tests its 6ema. A strong stock should find support in that area. By waiting for that test we take a lot of risk off the trade. We don't chase and we find out whether the stock has enough buying pressure to carry for the the rest of the day.
