Re: AZPN .... Laurence Cooper and Jeff Cooper have written a couple of books showing how to set up trading systems. Hit And Run Trading and Advanced Trading Strategies are a couple of must reads for the advanced system trader.
One of the chart patterns that Cooper defines and has had a lot of success with is called the Cooper 1-2-3 Pattern.
>>> This is the basis of my favorite stock trading systems, The Three Day Hammer. This is a pattern written about by both Laurence Connors and Jeff Cooper. It solves the problem of stock trading systems of when and how to enter runaway markets.
Richard Wyckoff and W.D. Gann, technicians from more than 70 years ago, noticed that very strong and very weak markets usually do not correct for more than three days. By identifying these strong markets, waiting for a three day pause, you jump aboard the selected stock picks for the climb to new levels. <<<
arbtrading.com
The set up is explained in the above link. We are primarily focusing on price, candlesticks and the ADX indicator.
AZPN comes very close to qualifying for the Cooper 1-2-3 pattern. It isn't perfect but it was close enough to show up in my scan.
The set up calls for the ADX line (the black line in the ADX indicator on the accompanying chart) to be above 30. It's at 28.
We do have the third day hammer forming an inside day from the first day of the 3 day chart pattern. (Comments on the chart.)
stockcharts.com[h,a]daclyiay[db][pb50!b20][vc60][ill14][J63734218,Y]&listNum=1
If we take Coopers "continuation pattern" a step further, take note of the very positive fuel cells in the MACD and the very bullish money flows. This is the type of set up where you expect to see price go higher.
stockcharts.com[h,a]daclyiay[db][pb50!b20!f][vc60][iut!Lah12,26,9!Lc20][J63734218,Y]&pref=G
Entry target $7.56. Price target $8.25 Initial stop loss $7.35.
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