The above link shows a pattern that is ripe for an exhaustion reversal but use risk management, position sizing and probability. For example, I have identified an upside resistance level at just under $31 a share, therefore my stop loss is slighly ABOVE that level - $31.10
That is an .86 stop loss so were I to short 1000 shares I have to accept a potential loss of -$860. - If that represents too great a loss of your trading capital, DO NOT adjust your sound stop, rather reduce your short position size!
Fulcrum Shift Trading