Something for the weekend

This is a discussion on Something for the weekend within the Technical Analysis forums, part of the Methods category; Thoughts on this one?...

Reply
 
LinkBack Thread Tools Search this Thread
Old May 10, 2003, 5:54am   #1
TBS
 
TBS's Avatar
Joined Dec 2001
Something for the weekend

Thoughts on this one?

Click the image to open in full size.
__________________
TBS
TBS is offline Coach/Trainer   Reply With Quote
Old May 10, 2003, 10:25am   #2
 
Helenqu's Avatar
Joined Dec 2001
Click the image to open in full size.


Well as I see it this "could" be part of an inverse H&S or an Asc Tri with a target of 1300. It went back to retest the neckline at 700ish and now that co-incides with the uptrend line and they rather neatly meet at 700. It's got itself mired up in a lot of congestion/consolidation which could be a mark that it's going to rocket up OR that it's toppy. Most likely i think is consolidation until the price reaches the uptrend line at 700 again then off and up. But if the 700 level goes then it's a short.


You will tell us won't you? I guess this is one of the ones for the course today. Feel lost without candles and CCI though, not enough information
__________________
Helen
Helenqu is offline   Reply With Quote
Old May 10, 2003, 11:38am   #3
 
Mr. Charts's Avatar
Joined Sep 2001
Cup and handle. The time to go long was on the ascending side of the handle as it broke above handle base resistance around 570.
__________________
Mr. Charts
Full time US Share Trader
Follow me on Twitter @MrChartsJoyson

Contributor to T2W's Trading FAQ Book
http://www.trade2win.com/books/trading-faqs

T2W interview

http://www.trade2win.com/knowledge/a...ichard-joyson/
Mr. Charts is offline Coach/Trainer   Reply With Quote
Old May 10, 2003, 12:22pm   #4
Joined Mar 2001
Agree with Mr. C - up to a point

The Cup and Handle is confirmed on the breakout above ~640 with a target of 1180 A good chance of this making the target with the RHS of the cup higher than the LHS

The triangle - kindly drawn by Helen - gives a target of 1120. This appears to be part of the general up trend and may not be significant. The current price is supported by the upper t/l on the triangle (just)

The longer term demand t/l is still intact but I would be concerned in around 3 time periods if the short term down trend nears this trendline.

If I had gone long at 640 my stop loss would be now 800 - the last accepted low - so I am definitely worried.
__________________
Peter
esiotrot is offline   Reply With Quote
Old May 10, 2003, 1:00pm   #5
 
Mr. Charts's Avatar
Joined Sep 2001
esiotrot,
Yes, the text book BO is as you say, however,you need to stay ahead of the crowd and look for clues of the impending trade the market might offer. The immediate past trading range was clearly broken at the level I mentioned so you go long with a stop back in the trading range.
That means:
(a) your stop is much closer producing far less risk
(b) your profit potential is much greater - I'd rather be long at 570 than 700
(c) look at how momentum accelerated from the BO at 570 - why?- because others saw the BO and jumped on it.
(d) had the rise stopped at the 640 you mention, (or the 700 which is my view of the C&H BO), producing a double top, your approach would have given rise to at least a small loss, whereas mine would have already produced a handsome profit.
Only my views, of course, but that's the way I trade and everyone to their own methods ;-)
__________________
Mr. Charts
Full time US Share Trader
Follow me on Twitter @MrChartsJoyson

Contributor to T2W's Trading FAQ Book
http://www.trade2win.com/books/trading-faqs

T2W interview

http://www.trade2win.com/knowledge/a...ichard-joyson/
Mr. Charts is offline Coach/Trainer   Reply With Quote
Old May 10, 2003, 1:12pm   #6
 
jpwone's Avatar
Joined Nov 2001
Volume might have been useful for this one as it could have helped to interpret the strength of the quick upward move

The actual is moving down in an upward trending channel (bottom part is trend line in Helens post). I would be looking for support on the bottom part of the channel, probably in the 720-750 range. If this failed I would have a downside target of 500 (+ or - 20).

So, I would go for a small stake long around the 730 level. If this was confirmed then I would add. I would run a firm stoploss at 690 with a dicretional stoploss at 700 to 710.

If the 700 level failed I would be looking to short.

As I would be looking for it to test 730 it might even be worth putting in a short at the current 800 level. This would maximise possible return if my interpretation was correct and could be run with a tight stop and a trailing stop added if the down move coninues.

John

Last edited by jpwone; May 10, 2003 at 1:36pm.
jpwone is offline   Reply With Quote
Old May 10, 2003, 1:50pm   #7
 
options's Avatar
Joined Jul 2001
I love this game, (trading) everyone sees the same picture and has a different view, different trade set up.

Good idea TBS. Post a chart with no name so people are not swayed by who/what it is.

As it stands the chart is pure guesswork and nothing else. Add the volume bars to the chart and you may begin to get a clearer picture.

Anyway, fwiw.

The long entry position was at 100 on the second leg of the double bottom if you had been following this chart and were brave enough, stop at 50 for a gamble play.
That's the hindsight bit out of the way.

As it is now. I would short this with a stop of 855 and a first target of 750 then a target of 700. My reason being that it keeps running into congestion and failed 5 times to reach, breach and hold the 900. however, if it starts to turn up from here on ample volume, then a long would be in order to hopefully push through the 900at the 6th attempt.
This is how I read itand would trade it , others will of course see it differently.

Interesting to see the follow up TBS.
options is offline   Reply With Quote
Old May 10, 2003, 2:30pm   #8
 
Bell-Air's Avatar
 
2 Posts
Joined Dec 2002
Buy a call and put and profit from any direction so long as it moves
Bell-Air is offline   Reply With Quote
Old May 10, 2003, 2:35pm   #9
 
Helenqu's Avatar
Joined Dec 2001
I wouldn't dream of going anywhere near this for a trade, too cluttered and uncertain.

AKA "The Wimp "
__________________
Helen
Helenqu is offline   Reply With Quote
Old May 10, 2003, 10:12pm   #10
TBS
 
TBS's Avatar
Joined Dec 2001
TBS started this thread Interesting

You will find the 'real' chart here.

http://tinyurl.com/bgds
__________________
TBS
TBS is offline Coach/Trainer   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Some Edu 4 The Weekend hagadol Educational Resources 0 Jul 23, 2005 4:56pm
Something for the weekend sir? neil Technical Analysis 2 Sep 23, 2002 1:43pm
Jubilee Weekend Sharky T2W Feedback & Announcements 0 Jun 4, 2002 11:02pm

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)