Classic Geometric Patterns and Narrow Range Setups

Here is a 60 min chart of BRCM. The consolidation is clear. I tend to trade these similarly to TopGun' with respect to time frame, ie., I would be looking for a scalp versus a position.

However, for those of you who read this and would care to comment:

It seems to me that BRCM has built an ~ 3 year cup-and-handle as viewed on the weekly chart, and a 5 month cup-and-handle on the daily chart. I am not well-versed in this pattern and would appreciate commentary from those who are.

Thanks.
 

Attachments

Quote from inandlong:

Here is a 60 min chart of BRCM. The consolidation is clear. I tend to trade these similarly to TopGun' with respect to time frame, ie., I would be looking for a scalp versus a position.

However, for those of you who read this and would care to comment:

It seems to me that BRCM has built an ~ 3 year cup-and-handle as viewed on the weekly chart, and a 5 month cup-and-handle on the daily chart. I am not well-versed in this pattern and would appreciate commentary from those who are.

Thanks.
More...

Nice call on the breakout, IAL.

Did you get my PM ?

Regards
Oddi
 
Yes I did, Oddi. Thanks for that info and I just sent the same back to you via PM.

And thanks for keeping an eye on this thread. Your ideas are always welcome here.
 
Very nice chart, himself. I didn't know price per board-ft moved around that much. It looks like at least an NRID4. Normally I would be hesitant to trade a break following the recent volatility.... except in Lumber it looks like there isn't much consolidation, only NR days and trend days!

Thanks again for the chart, h'.
 
Quote from inandlong:

It looks like at least an NRID4. Normally I would be hesitant to trade a break following the recent volatility.... except in Lumber it looks like there isn't much consolidation, only NR days and trend days!

.
More...

Can you elaborate a little on your thoughts here? I interpret what you are saying as since volatility works in cycles low to high back to low, since chart is coming out of a higher volatility period, then it is the wrong time to focus on it.

any further insight you have would be great.
 
You have it right mdl', as far as what I am thinking. I have never tested the idea so I cannot say statistically whether there is truth or not to my thoughts. However, I prefer to trade breaks that are coming out of several bars of consolidation. In LB though, it appears that price takes a one day break and then moves again.

Thinskis has posted some very nice charts with hogs and cattle, ie., commodities. I wonder if the supply/demand nature of commodities provides for even better results than stocks.

Attached is a chart of HSY (Hershey). Today's range as yet is very narrow, and the proximity of the sma's along with the position of the RSI and MACD make this an interesting chart for me. Note the large earnings-outlook related gap highlighted by the green line.
 

Attachments

hello "inandlong",

thanks for the note, most kind

you know, sometimes the ROC and your kind of setups work together, or to say it better, the NR7 & related are good filters for the ROC

but the ROC can also be used to highlight low volatility points. on the Euro here, 2 days ago we had a ID/NR4, then Friday an outside day. no problem, the situation still exists, the ID/OD is a wind-up pattern too . . . and note here how the ROC is narrowing the swings and coming to an equilibrium point. just one more tool in the bag of "tricks" . . .

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=678303>
 

Attachments

You must log in or register to reply here.
Back
Top