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NB, how did you calculate that target?
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Dave
Dave,Originally posted by DSteckler
I gave only the top target via PnF. The chart has intermediate targets, too.Comment
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Thanks much.Comment
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Intermediate targets on SU
Here's the weekly that says $90.Originally posted by DSteckler
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Vlo
VLO--govt reports gasoline stocks on Wed. Today VLO is flat. Might be a good entry . . . this thing is going higher
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Aa
AA showing a topping tail this afternoon. Caution here.Comment
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How to Spot a Reversal in a Stock
The RULES of Reversals
There are a few preliminary points considered common to all reversal patterns that you should absolutely know before trying to pick a top or bottom in stock trading (which is difficult enough!):
A prerequisite for any reversal pattern is the existence of a prior trend.
The first signal of a trend reversal is a break in an important trendline.
The larger the pattern, the bigger the subsequent move.
Topping patterns are shorter in duration and more volatile than bottoms
Bottoms have smaller price ranges and take longer to build
Volume is more important on the upside
Existence of a Prior Trend - A prior major trend is the most important prerequisite for a reversal pattern. Of course, if there is not trend, there's nothing to reverse. One of the key elements in pattern recognition is knowing where certain patterns are most likely to show up in a trend structure, as in uptrend or downtrend.
Breaking of Important Trendlines - One of the first signs of trend reversal is the breaking of an important trendline. However, the violation of the trendline may be no more than just a signal of a change in trend. It could be a sideways trend or price pattern later proving to be a reversal or consolidation.
Larger the Pattern, Greater the Potential - Larger, in this case, refers to the height and width of the price pattern. Height measures the volatility, and the width measures the time taken to build and complete the pattern. The wider the price swings within the pattern (the measure of volatility) and the longer it takes to build, the more important the pattern and the greater the potential for the ensuing move.
Measuring techniques which measure the height of the pattern or vertical criteria are primarily applied to bar charts. Measuring the horizontal width of a a price pattern, used for point and figure charting, uses a device called a "count" which assumes a close relationship between the width of a top or bottom and the subsequent price target.
Differences Between Tops and Bottoms - There are distinctive differences between tops and bottoms. Tops are shorter in duration, more volatile, and their price swings are wider and more violent. Whereas, bottoms have smaller price ranges and take longer to build, making them easier and less costly to identify. It is also easier to trade bottoms than to catch tops. However, traders can usually make money a lot faster by catching the short side of a bear market because prices tend to decline faster than they go up. It is always a tradeoff between reward and risk. Greater risks capture greater rewards, and vice versa. Topping patterns may be harder to catch, but Day Trading, Swing Trading and Options Trading traders all agree that they are worth the effort.
Volume is More Important on the Upside - Volume is an important factor in confirming the completion of price patterns, and generally, it increases in the direction of market trend. Noticeable volume increases should accompany the completion of a price pattern. Note that in the early stages of trend reversal, volume is not as important at market tops. Although traders like to see an increase in trading activity as prices go down, it's not critical. However, at bottoms a volume pick up is vital. If there's no significant increase in volume during an upside breakout, the whole price pattern should be questioned.
Happy Trading,
Andy Swan
co-founder, DaytradeTeam
p.s. Watch in our Live Trading Room as our experts point out price pattern reversals and their implications for the current trend. Join us now by signing up for our 5 Trading Day Trial for only $5.
posted by DaytradeTeam Articles at 8:57 AM
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The SEC and FTC want you to know: "DAY TRADING involves high risks and YOU can LOSE a lot of money."Comment
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New Born CCUR & SNCI
NB Both CCUR and SNCI look interesting .......but I like CCUR better. Also interesting oil sands stock is SOIGF . If ya get a chance check them out .Thanx pete!Comment
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Pete the gold miner!
Pete,Originally posted by Peter Hansen
You really excel at finding these jems! NICE!
CCUR--ready to roll! W formation with breakout and retest. BUY HERE. Sell at $4.50 target.
SNCI--IF she breaksout, looks very nice.
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CCUR looks ready to pull back to the 200-week MA, around 2.60. The daily chart is also overbought and rolled over Monday. Should it hold at or above the weekly MA, that would be a good place to buy, IMO.Comment
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NB COGO Nice Chart
NB COGO looks nice but I think it just was up 5.16% and probably will pull back.......but this could be a possible money maker?Comment
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DSteckler Thanx for Your input
DSteckler .......It is nice to recieve other opinions and thoughts.....I do value your suggestion ........Thanx Unfortunately for me I did buy a small position in CCUR for 3.11 and set a stop for 2.71.....I shall see what happens!Originally posted by DStecklerComment
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AW came up on my radar
AW Looks likea good buy here !Comment
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Ccur
Pete,Originally posted by Peter Hansen
Are you sweating out buying that old CCUR dog? Wishing you had purchased a purebred instead? Come come! Buyer's remorse!
Let's look at a couple of charts and rethink this thing:
Here's the daily. It shows us that CCUR bounced strongly off of support, and that today formed a doji--a signal of a trend reversal, i.e., the downtrend is over.
Then look at the weekly. The weekly is as normal and as healthy as it gets. It was the usual retest of the neckline. No sweat here
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COGO--a couple of my thoughts . . .Originally posted by Peter Hansen
1. New issue, so who knows what will happen next?
2. In the Twilight Zone, i.e., all-time highs. When does it run out of rocket fuel? Soon, imo.
3. Cup target of $10.50 met already. Looking to pullback now, imo.
My problem is I avoid the new issues. Sure, GooG was a tremendous success. But GooG was an $85 stock To buy a new issue, I think one really needs to do the MM thing: research. Me, "I don't do research."
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