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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: CommanderCricket who wrote (1622)	1/5/2005 2:27:54 PM
From: kodiak_bull	Read Replies (1) \| Respond to of 13449

In the spirit of this fine thread, here's a nice looking 5-bar play on a stock which should continue to snap back up. It's currently (2:30 pm est) forming a nice looking bullish engulfing on good volume: stockcharts.com[h,a]dacayiay[pb13!b20!f][vc60][iUb14!Lf]&pref=G I think this one has power enough to run to the high $16s tomorrow. Special thanks to DB for focusing on these 3,4 and 5 day bar correction patterns. Kb

To: CommanderCricket who wrote (1622)	1/5/2005 7:09:32 PM
From: chowder	Respond to of 13449

Michael, What makes TGA a good candidate for tomorrow is that the 3 bar drop and today's candle took the price down to the 50 day moving average where price found some support. Now this is interesting and is a good example of how to use this chart pattern for buy and sell setups. Look at the price action at the beginning of December! We saw a 4 bar drop off the recent price high at $5.94. The next day saw a Doji and this was a great setup to go long. What is missing on this chart is support from a major moving average but, the pattern looks very good here. Based on my entry rules, you would buy 6-12 cents above the day's high. We'll say entry target $5.20. stockcharts.com[h,a]daclyiay[d20040905,20041206][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G Now we come up to date and look at the chart today and compare it to the chart back in early December. The trade in December would not have triggered. It wouldn't have triggered a week later. It wouldn't have triggered a month later. Our buy and sell disciplines would have had you waiting for a better opportunity. Here is the chart as of today. stockcharts.com[h,a]daclyiay[d20041005,20050106][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G What increases the odds of this chart pattern, and nothing is perfect, is that it has formed at a major moving average. You set your entry target 6-12 cents above today's high and you set you stop 6-12 cents below the 50 day moving average. The short term trader would look for 30-40 cents on the trade and might even pick up the size because the risk is minimized by buying off the 50 day moving average. Stops must be adhered to with this strategy though because a break below the 50 dma would be very bearish. dabum