Note how much of the break takes place in the first 30 minutes of trading. This offers a very small window for the trader to get on board safely. INTU pattern cycles shift back and forth through charts of different time frames. If you get lazy and only focus your attention on a single segment, your level II screen may flash a breakout but you won't understand the source or reason. Without the right information, odds increase that you'll jump in at the wrong time and buy a top or sell a bottom.
Good traders know when to stand aside.
As INTU approaches 60, long side trades become very risky. At this point, our strategy relies on the broader pattern cycle to provide our guidance. Looking back, we realize that price has returned to the beginning of the original reversal and stands right at a potential double top. Smart traders never buy into a double top. But we should not sell short at this level either since the uptrend remains well intact.