Classic Geometric Patterns and Narrow Range Setups

Traderkay,

Here is a nice chart for you. The symbol TDKY.... look familiar? :)

A guy comes to your office T'kay, and says he heard you were the resident guru. He shows you this chart and says he doesn't know whether to buy this stock or short this stock. He says he is willing to split the profit with you, but will absorb all the loss. And he is looking to enter the position with 5000 shares.

Traderkay.... what do you from here?

Similarly but different, take a look at the BBI chart t'kay. Using the concepts of compressed volatility, narrow ranges, inside days, range breaks, buying new highs and selling new lows, and any one of the bazillion sound methods that have been discussed repeatedly on ET, is there some way you see that you might be able to profit from trading the BBI chart?
 

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Here is a chart that is a nice setup. The previous chart was TXT. Check out how it did.

This chart is RHI, not a fictitious symbol, but Robert Half Int'l.

For traderkay, and others, I put some clues on the chart as a suggestion as to how one might attempt to trade this.

Although following each of the clues, the stock sold off a bit, I am not suggesting a short or a long.... just a trade.
 

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Not a bad looking chart. Fairly standard settings on the indicators. Popular sma's. Liquid stock. Price pattern is certainly one of consolidation. And today was a narrow range 7 inside day.

Coincidently, this is on the list of Alan Farley's Bear Hug selections.
 

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Nothin' comes easy does it?

Notice how the price opened outside the upper boundary.... then made its move. Did they pick off stops with that opening, or was it just a result of the anticipated big day from the positive economic numbers. Tough play for the geo trader.

The NRID trader had no problems, and did well with his 1000 shres.
 

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This is TXT. I first posted this on Sunday 10-26 under the symbol TDKY... in honor of Traderkay. It was at 47.15 then. Two trading weeks later, it is at 50.12. And golly gee whiz it is doing that consolidation thing again.

Let's see, 500 shares tied up about 12K initial margin, 10K maintenance for two weeks and made about $1500. Of course Hershey's stock method can do that and even better. But hey, it's still a good trade.
 

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