Point and Figure Charting Message Board

STOCKTALK

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 : Point and Figure Charting

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: R Stevens who wrote (4428)	7/5/1998 12:56:00 PM
From: Bwe	Read Replies (1) of 34811

I neglected to answer your question with regard to the bull trap formation. The key feature of the bull trap formation is when a buy signal is given after a stock penetrates a triple top formation, that is where the two previous tops occurred at the same, or almost the same, price level. The immediate pullback occurs after having people's stop-buy orders executed for those investor's covering short sales at the triple top buy point. Also, the subsequent pullback fools those that bought the triple top buy signal. Since the bull trap can't be detected before it actually occurs, a trader with a short term time frame for the particular trade could put it a stop loss order at the reversal point in order to prevent further losses. Hope this helps. If you would like me to explain the bear trap, the good twin to the bull trap, in a bit more detail, I'd be more than happy to. Bruce

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next