Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: #Breeze who wrote (15059)	1/3/2023 2:05:58 PM
From: Kirk ©	1 Recommendation Recommended By Return to Sender Read Replies (1) \| Respond to of 26758

Thanks. I was of the impression these patterns only become "predictive" when their necklines breakout and better with volume. Until then, I usually call them "potential" patterns. Fidelity agrees.... I'll put those resistance-turned-support prices on my alert list to either take profits if over allocated or get ready to watch and perhaps reset my profit taking price for when that "potential price" become a "iH&S minimum target price" . Subtle.... but some are not good at reading charts and patterns even if you hold their hands so I've learned to be careful. . How this indicator works The cup should resemble a bowl or rounding bottom. The perfect pattern would have equal highs on both sides of the cup, but this is not always the case. After the high forms on the right side of the cup, there is a pullback that forms the handle. The handle is the consolidation before breakout and can retrace up to 1/3 of the cup's advance, but usually not more. The cup can be spread out from 1 to 6 months, occasionally longer. Ideally, the handle will form and complete over 1-4 weeks. The buy point occurs when the stock breaks out or moves upward through the old point of resistance (right side of the cup). This breakout should occur with increased volume. The price target following the breakout can be estimated by measuring the distance from the right top of the cup to the bottom of the cup and adding that number to the buy point. This should be used only as a guideline.