Hi RtS - thanks. Sorry I missed your past 2 posts. Here is my confusion though [my TA is below amateur status!] AFAIK, if the boundary [upper or lower] of Bollinger's is violated, the ensuring action can be a breakout or breakdown. This is not the same as the upper and lower bounds are intact and thus a signal for traders to place their bet accordingly. And I have also heard about the contrarian tendency of RSI. However, it seems that the same idea [pertaining to the Bollinger's] applies here.
Even though doing DD is really a foregone conclusion, I am glad you mentioning it. Like it or not, one is investing one's monies, so it is fair for one to watch for oneself. Having said that, IMHO, SI is a place to share ideas. Besides, considering the huge float like that of ELN, it is not a hype stock anyway.
OOH, one can see the recent correction is a buying oppty and it may matter little if one holds for the long term. OTOH, I thought some TA systems look for confirmations.
best, Bosco |
