This is taken from my note writings after watching Chapter 9 from Trading Tickers. Chapter 9 deals with Shorting Lower Highs Into Spikes. The main thing I learned from Tim is that SHORTING DAY 1 of a big runner based off of intraday resistance does not work. Day 2 of the move and beyond is ideal. There is too much risk shorting a day one move at any time unless there is some major resistance previously on the daily chart. 

The only time it is acceptable to short day 1 of a runner is into daily resistance with high volume.

 

Shorting lower highs into spikes is one of the methods used to try to time the top of the spike. Stocks usually do not only go straight up. There should be consolidation or at least choppiness along the way. They need to pull back and consolidate before the next leg up.

The entry is to get short into the bounce after the FIRST HARD PULLBACK. This is something to look for on Day 2 of the move and beyond. 

Top % Gainers that crack, then set a lower high or a double top. 

There has to be reward. I am looking for a large run from the previous support or consolidation area.

Since most of the time the stock will still be green, it is wise to pay myself along the way down.

Again Shorting Day 1 of a runner based off of daily resistance does not work. There needs to be bagholders. There needs to be a large daily candle with decent volume to risk off of...

Also paying ones self along the way eliminates the chance to catch the all day fade. 

 

Conclusion: This was a strategy that Tim used for a while and found that it was not working on day one runners. He adjusted it and began to apply its principles to day 2 and beyond and found that more efficent.