5 point pattern trading
- Thread starter phillyflipper
- Start date
Quote from BigBubba:
thanks flipper.. that looks good to me
would you consider B to be a logical target?
or target-1 at least?
bb
BB, I would consider B to be target one and stop would be breakeven at that point with multiple contracts. then C, and then A and if any left a break of A can be big. But that is each person's decision
I post this update to PDLI to show how my opinion does not matter....the pattern matters. We had a bullish pattern at 18.22
and I did not take it because I let the news influence me. Now sometimes you will be correct to stand down and other times not but we will never really know which is which. I do know that people who may have been long earlier did get hurt by this pullback so fear to enter is understandable. I expected a retest of 18.00...we still may get it..or not. I will let this go because of the emotion...maybe.
and I did not take it because I let the news influence me. Now sometimes you will be correct to stand down and other times not but we will never really know which is which. I do know that people who may have been long earlier did get hurt by this pullback so fear to enter is understandable. I expected a retest of 18.00...we still may get it..or not. I will let this go because of the emotion...maybe.
update ARJ Arch Chemical. This is a bearish butterfly pattern. This can still break down. I am not in this stock at all. If I was, I would have a stop at 45.00, right above the 1.618 extension of XA. If 45.00 gets taken out then I would take the hit. Entry of this trade would be point D 43.30. Some would elect to be out of this trade already which is fine. Again , I am not in this but the pattern is bearish and notice the volume is drying up.
Cake Cheesecake Factory. If you like cheesecake this could be a buy here. The pattern actually triggered on 6/29/07, bounced and came down again past point D but stopped at the 1.27 of XA
24.08. A more perfect butterfly pattern will complete at the 1.27 or1.618 of XA. We also saw in previous examples that point D came be exceeded by 1-2 points and still not negate the bias, in this case bullish (exceeded by only .40). If you believe in second chances this can be it. The parameters are clear. If you take this
position at around 25.10 your stop can be 24.00 so risk is small.
24.08. A more perfect butterfly pattern will complete at the 1.27 or1.618 of XA. We also saw in previous examples that point D came be exceeded by 1-2 points and still not negate the bias, in this case bullish (exceeded by only .40). If you believe in second chances this can be it. The parameters are clear. If you take this
position at around 25.10 your stop can be 24.00 so risk is small.
CHS update Chicos....indices did very poorly but Chicos managed to hold up above point D. Pattern is bullish...all the bad news could already be in the price. If i take this as a position, my stop will be 14.75
ADP Automatic Data Processing On 7/30/07 bullish "Bat" pattern
was triggered and bounced nicely, but market conditions smacked it back down. We are holding above point D today even when the indices sold off hard. This could be a second chance.
Stop would have to be below point X (44.35)
was triggered and bounced nicely, but market conditions smacked it back down. We are holding above point D today even when the indices sold off hard. This could be a second chance.
Stop would have to be below point X (44.35)
CAKE Cheesecake factory. Just added this stock to my portfolio at $24.91 based on a second chance of a buy near point D (24.45). My stop will be 24.00. risk is clearly defined at this point.
I will either be stopped out or look for a target at point A (29.50)
and if the cheese cake is very good it can take out point A and move higher. I know nothing about this company, just going by the patterns....I do like cheese cake.
I will either be stopped out or look for a target at point A (29.50)
and if the cheese cake is very good it can take out point A and move higher. I know nothing about this company, just going by the patterns....I do like cheese cake.
CAKE CHEESECAKE UPDATE....MY STOP AT 24.00 held for today.
and the 1.27 retracement of XA held. If we can't stay above point D on Monday then I will probably be stopped out at 24.00 .
My entry was 24.91
and the 1.27 retracement of XA held. If we can't stay above point D on Monday then I will probably be stopped out at 24.00 .
My entry was 24.91
What is your estimate for the probability to reach 29.50 before it reaches 24.? Also, is there any exit before it reaches the target or stop, depending on the price behavior in the meantime?