One of the nicest examples of a stock that has "tipped its hand" and revealed just how sharply it can fall is Estee Lauder (symbol EL). The chart below shows that, after quintupling in price, it broke a cleanly-defined trendline and, more importantly, clawed its way back just to the underside.
I shorted EL on Friday, and although this chart (from pre-market) doesn't reflect it, the stock tumbled over 10% today. The beauty of these is that the "claw-back" to the trendline provides a very clean stop-loss point, thus offering a beautiful risk/reward ratio.
