Some traders use this opportunity to short the stock. However, it is a short term trade and you must be careful, because you are trading AGAINST the trend.
The stop loss is placed at the top of the top of the peak.
To short the stock, wait till the stock reaches the previous high and wait for it to have a down day, that is, the stock closes lower.
The target is two times the initial risk. Sell half when the stock reaches two times the initial risk and have a trailing stop for the remaining half.
See the following examples.
