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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: microhoogle! who wrote (83912)	5/2/2007 12:06:01 PM
From: chowder	Respond to of 206325

Re: CHK ... We have a rising 20 day moving average above a rising 50 day moving average, with a comfortable distance between the two. This is a Bullish Alignment, and when you have a Bullish Alignment, there are two low risk, high probability buy set ups. The first buy set up is a 3 to 5 bar drop into a rising 20 day moving average. CHK had a 4 bar drop that began on 4/16. The buy set up appears when price trades above the final down bar of the pattern, indicated by the number 1 on the chart. The second buy set up, when you have a Bullish Alignment, is when price forms a high volume break out, preferably with 50% or more above average volume. The pattern has additional strength when price forms a wide range bar off that price movement. High volume, wide range bar break outs are buyable nearly 100% of the time. The second buy set up is marked 2. This is a daily chart which implies a good short to intermediate term set up. When the above patterns appear on a weekly chart, you can usually expect a stronger price move and the set up is for intermediate to longer term holds. The only thing I change on the weekly chart is one of the moving averages. I use a 40 week instead of a 50 week.