Battle Plan Trade of the Week: Selling Short and Scaling In

There are many trading strategies and techniques that we follow in Larry Connors Daily Battle Planthat are new to some traders - even traders who have been in the trading game for years.
One of the ways we trade differently is by buying markets after they have become oversold and exiting after those markets have recovered and moved higher. This is our long trading strategy for stocks and ETFs and has been historically tested to be an excellent way for short term traders to make high probability trades in the marketplace.
Another way we trade differently is by scaling into positions. Our approach to scaling into positions is consistent with our strategy for taking positions in the first place. In other words, when we are looking to buy a market, we look to buy more as the market moves lower. And when we are looking to sell a market short, we will add to our position as the market moves higher and becomes increasingly overbought.