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

To: Jack Be Quick who wrote (13234)	12/8/2007 5:18:44 PM
From: chowder	Read Replies (1) \| Respond to of 13449

NCT represents a different type of set up than JWN, both of which present buying opportunities. With JWN, there was a wide range, high volume bar. The key being the wide range that price traded that day. When you have a wide range bar, it indicates that people want in, regardless of price. The panic buying is what causes the price range to jump that day. You want to see price close near the high of the day. This is what happened with JWN. NCT looks like it is responding to a double bottom in the near term. In early November, we can see a wide range down bar on huge volume. If this were to the upside, I would jump all over it for a long term position. It was to the downside though. However, that wide range bear bar, following a steep price drop, is known as a selling climax. It usually indicates a bottom, or that a bottom is near. Price responded to that selling climax with a bullish reversal, suggesting a short term trade for a price move of $1.50 to $2.00 per share. I normally overweight a position on short term trades. Stop to be placed under the November lows. Once the profit objective is hit, I sell at least half of the position and hold the rest for the longer term.