SWK gapped down 6.74% on a disappointing earnings report. Typically stocks that gap down and have continued selling the first five minutes of the day continue lower. Notice how the 2nd thru 6th bars of the day alternated green-red-green-red-green. This trading range can break in either direction, but it is unusual and odds favor a break to the upside. When SWK traded over the small 7:10am PST signal bar at $72.77 the long trade was triggered and the bear flag pattern failed (most bear flags break to the downside). SWK traded up to $76.24 for a maximum reward/risk of $3.46/$0.42.