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

To: Davy Crockett who wrote (11808)	4/3/2007 1:03:23 AM
From: chowder	Read Replies (1) \| Respond to of 13449

Re: CLS ... >>> The far left of this monthly chart suggest that the bottom has been put in. <<< And you might be right! When I present a buy set, my objective is to present a "low risk, high probability of success" trade. There are a lot of set ups out there that may turn out successful, but the risk is higher and the probability of succeeding in a shorter time frame are lower. CLS looks like it was a nice set up for you, but it doesn't meet my definition for a lower risk entry. Although you had a wide range bar today, that only met 1/2 of the criteria I require to enter a trade. It was missing the huge volume needed to show the price move was being driven by professional money. Today's price action looks like it was driven by short covering and the bottom fishers. Again, you may have nailed the bottom. And, this may be the beginning of the stock transitioning into an uptrend ... but ... we haven't seen a change of character in the trend. Once price closes above the pivot high of $6.73, I see that gap getting filled. By waiting to enter above the pivot high, the set up is a much lower risk set up and a larger position can be bought to offset the gains one would have had if they caught the bottom.