SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Underexposed Technical Analysis
AQN 6.490-0.6%Feb 6 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Underexposed who wrote (898)3/24/2021 3:23:46 AM
From: Underexposed   of 914
 
This is an important lesson to remember using Bollinger Bands

Here is a chart for Aurora Cannabis Inc [ACB:TSE]



Ahhhhhh.....maryjane stocks....gotta love them.

Let's start from the left...look at the volume in that first circle....relatively low for months as the stock slides from previous heights...then Wow...the stock suddenly takes off like a rocket...if you could have caught this stock as it took off on that buy signal....you are a better man than I.

I can hear the stockroom chat areas screaming that now is the time to buy this rocket...it soars to4x its starting value in just 3 days....it stops high above the upper bollie. The pumpers are telling everyone to "Back up the truck and load up on this stock" and the naive and mostly newbies to the stock market rush to buy because this is a stock dreams are made of...look at the volumes at this time....HUGE, Eh!!!

IF you were lucky enough to have bought this stock before November you would sell if you were smart.

this is almost a classic pump/dump action.... if it was a classic pump/dump the price would have fallen back to about $5/share ... but this time it stopped at about $9.... At least you would have made some money...but look at how much you left on the table!!!

The November circle shows what happens when your stock rises above the upper bollie....the price does not belong there...it will fall back....and what happens when it does...how it re-enters the Bollie envelope governs whether the stock will fall, go sideways or rise again.... all four of these examples are of the "fall variety.

Look at the indices right now....Slow Sto and MACD are falling... the BBWidth is flattening out.... the share price is hugging the lower bollie in a forming squeeze... this stock is setting up for another price drop. Bearish


HERE ARE EXAMPLES WHERE THE RESULT OF ABOVE THE UPPER BB BECOMES BULLISH




This is the case where the share prices re-enter in a sideways movement... this is more bullish.... Pay attention to the Slow Sto and MACD... if the Slow Slow is rising or above 80.... that re-entry should be bullish if the MACD has a +ve slope that re-entry should be bullish for sure



This is an example of a very bullish rise with the price going above the upper bollie repeatedly. again for confirmation look at the Slow Sto and MACD



when you see a rise above the upper bollie...it rarely lasts more than 5-6 continuous days. Don't listen to the stock chat rooms shouting that the stock is going to the moon....not going to happen... the price will come back to earth sometime soon.

UE
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News