I will often stress the importance of trading off of multiple time frames. Typically, if I can get a short-setup to line up on the 5 minute and daily charts that is usually a setup that I won't hesitate to take.
But finding trades that line up ideally on multiple time frames isn't the easiest setups to find, so often times, as traders, we'll look at one time frame, like what we see, and be done with it.
In the case of Cheesecake Factory (CAKE) though, you'll see that it lines up perfectly on the five-minute chart that shows a rejection at a well-defined resistance level, as well as a developing head and shoulders pattern.
Now look at the daily chart, and you'll see a well-defined down-trend since the beginning of October where the price action has been unable to get back above the declining trend-line and that helps to define the risk on the trade, and in this case, it's only about 2%, which is hard to beat for swing-traders.
On this same chart, you'll see that I posted the stop-loss just above the declining trend-line, and each day I'll adjust the stop-loss to where it is just a shade above the trend.
The risk reward is also favorable as well. I'm short from $33.50. Stoploss is marked on the daily chart at $34.25, with at target around $31.