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Strategies & Market Trends : Underexposed Technical Analysis
AQN 6.490-0.6%Feb 6 9:30 AM EST
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From: Underexposed3/19/2021 2:46:42 AM
1 Recommendation

Recommended By
The Ox

  Read Replies (1) of 914
 
Can my Trigger chart identify a bottom to a price drop?

Identifying a bottom is important on two levels:

1. For those that short stocks

I will admit that I don't short stocks but I recognize that is is a common practice among several traders. Knowing that a stock has reached a bottom is critical to their success. Pulling the plug on a stock too early would reduce the profitability of the play..... Letting the short ride too late would cause a loss of profit.

2. To determine when it is possible to buy back into a stock that you like but is falling.

You have sold a stock for a good price because it is in decline. You want to see that it has reached a bottom before buying it back.

I am going to show you several stocks whose prices fell at the start of the COVID plague... Both American and Canadian stocks.

Each chart is 18 months in timeline





When you look at these charts one feature stands out like a sore thumb does it not.

I call it my MACD/BBWidth squeeze

Personally I find it more useful for locating a bottom for the purpose of buying back in.... but then I don't short stocks. The problem with shorting is deciding what to short and while this feature works fine for plummets...slow declines don't work as well.

But for determining where to buy in after a dramatic fall...I think it has merit.

Visually it is not hard to see afterward but it would be nice to figure an algorithm to serch for these occurrences.

Comments???

UE
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