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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: mike n. who wrote (4626)	1/24/2014 12:44:24 PM
From: Andrew~	Read Replies (1) \| Respond to of 203260

Hello Mike, The "hook" is the final part of an ascending scallop formation. The scallop is rather like a "J" shape and starts with a bowl or "U". Ideally the bowl shape is mirrored in volume, if the minor lows are traced they should give the bowl, the next part of the pattern is the "handle" as the share price increases. The top of the scallop is where the "hook" will form. Here the share price will drop back before increasing. It may perhaps form a flag or another bowl, either way the breakout to the upside doesn't occur until the top of the scallop is reached. Ascending scallops average 4 weeks in width, if they are narrower they will have a higher failure rate. In the case of LK-V, the scallop is three weeks, the "bowl" can be traced with the minor lows and also the volume. The "handle" has increasing volume to the top of the scallop ($0.28) and now there appears to be a "hook" forming on reduced volume as the overbought condition unwinds. :)