Yes - and the white dotted is the 20sma (as you state), the red is the 200sma. Just noticed these were not labeled on the chart.
Classic Geometric Patterns and Narrow Range Setups
- Thread starter inandlong
- Start date
Yes - and the white dotted is the 20sma (as you state), the red is the 200sma. Just noticed these were not labeled on the chart.
Hi Again, Folks.
I read with interest various posts on TASR and decided to check out this stock. Honestly guys, do you wish to trade such a volatile stock? Yes, you could make a ton of money if you get it right. On the other hand, you could lose your pants and more. Anyway, for your benefit, I have attached four charts on TASR.
Chart1 shows the bounce stopped at the fibonacci retracement of 61.8% of the first KILLER sell-off. Chart 2 shows that after reaching the resistance at the 61.8% level, TASR decided to consolidate a bit, and has given back 38.2% of the rally. Chart 3 shows a closer look at intraday charts, and clearly if you are a wave-analyst you would be careful about being bullish on this chart at current levels. Finally, chart 4 tells us that unless we break above $44, we could easily come off. So be careful, my friends. There are lots of ways to make money, and the easiest way is to choose a well traded stock. You may not make your million in a few trades, but you will have enough to go on a vacation when you choose to. Good luck. (by the way, did you check on my preious post on the QQQ.). Cheers and good trading.
I read with interest various posts on TASR and decided to check out this stock. Honestly guys, do you wish to trade such a volatile stock? Yes, you could make a ton of money if you get it right. On the other hand, you could lose your pants and more. Anyway, for your benefit, I have attached four charts on TASR.
Chart1 shows the bounce stopped at the fibonacci retracement of 61.8% of the first KILLER sell-off. Chart 2 shows that after reaching the resistance at the 61.8% level, TASR decided to consolidate a bit, and has given back 38.2% of the rally. Chart 3 shows a closer look at intraday charts, and clearly if you are a wave-analyst you would be careful about being bullish on this chart at current levels. Finally, chart 4 tells us that unless we break above $44, we could easily come off. So be careful, my friends. There are lots of ways to make money, and the easiest way is to choose a well traded stock. You may not make your million in a few trades, but you will have enough to go on a vacation when you choose to. Good luck. (by the way, did you check on my preious post on the QQQ.). Cheers and good trading.
Sometimes the NR7 patterns form geometric patterns along the way. There is some directional predictability to these patterns... although a failed pattern is just as valuable as one that doesn't fail. An excellent site to review these types of patterns is www.chartpatterns.com.
As far as I know from reading several authors and in my experience, the NRID patterns themselves are not directionally predictive. That said - there are predictive candlestick patterns that occur within these setups.
yes lets do that. thanks for taking it up.
Quote from inandlong:
Sure, that sounds like a more reasonable number anyway. Of course we might have to endure the criticism that it doesn't properly represent the entire list blah blah; and, we know from previous threads that we don't even want to touch the topic of "random selection".
How about this? This weekend I'll set up an Excel spreadsheet using the same headings as I posted previously. I think ET allows upload of .xls format. That way we can rapidly do some "what if's." Some "what if's" I have in mind are changing the entry from .10 to a larger number, or having a set profit target like .30. However, to start, I'll keep it at .10, and post the Max Profit Potential and the MOC. We can make changes from there. Additionally, I'll include both NYSE and Nasdaq stocks.
Again, and I apologize for repeating the obvious, this is a sleepy market. And it is filled with conflicting signals versus all good or all bad. So this should be the most difficult market for a consolidation break method to be successful.
Also, easyguru has posted a consolidation break method using a set of parameters that works very well. Therefore, we must remember that using NRID's and geometric patterns is only ONE way to select consolidation break candidates, and in no way does this exercise represent the end-all of consolidation break trading methods.
If you are a professional, disciplined trader you should never lose your pants on TASR or any other stock (read: stops).
TASR actually is a very low risk set-up in the scenario I presented (which, is the appeal of most NR/ID strategies). But, I added the caveat that earnings were coming out. I would never hold it through earnings.