I would not short it right here, looks like some accumulation took place as it was falling the last couple of days (maybe some short covering) From what im looking at it seems like its due for another small bounce within the next few days, see what that bounce looks like when its over.
Double Top question
- Thread starter TraderNewb
- Start date
http://www.elitetrader.com/vb/attachment.php?s=&postid=1368497
Looks like the Short signal and the double top was about 21 trading days ago.
Simply, if your considering a Short now...it has nothing to do with the double top because that thing is in a completely different price action phase.
Thus, you need to find a new reasons to be shorting this.
More risk than reward at this point due to the fact its trying to find support and enter a bullish price action phase...
Big s/r zone (62.00 to 66.00) established from the price action of May 2006 and July 2006.
If you do short and it goes your way...that s/r zone provides a nice profit target.
Mark
I thought you went short from a double top once it broke through the valley? You are supposed to go short once it makes the double top?
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TnewB;
Depends on how you define double top & timeframe;
2 daily high -closes , followed by a daily lower close[eod] wouldnt help much in a strong uptrend like ES,SPY, DIA.Probably hurt. Note they continually make new12 month highs.
AMGN looks like a good downtrend;
below 50dma,200 day moving average, but long story short, look at lots more than that.
See how it does @ 12 month lows/12 month high;
AMGEN 12 mo low area $63.63 area .
Its in a bear trend for sure /12 month candle chart/50 & 200 dma
The plans of the diligent tend only to advantage.
There are hundreds of ways to trade a double top.
With that said, I'm clueless to your use of the term valley.
Regardless, once the price action changes into another price phase as AMGN currently is in...
You need to forget about the double top until prices reaches that level again.
Simply, you need a completely different reason to be shorting AMGN right now...
A reason that has nothing to do with the double top you saw +20 trading days ago.
Mark
The valley is the lowest point between the two peaks.
You were correct initially; it is valid when it breaks the valley low.
Incidentally, anyone notice that nice little double bottom from early December to early January?
Look at the long red candle on December 15th. Now, notice the volume on the green candle on January 12th (candle #8 in January) as the day closed well above the December 15th candle. Nice bit of profit there.
Look at the long red candle on December 15th. Now, notice the volume on the green candle on January 12th (candle #8 in January) as the day closed well above the December 15th candle. Nice bit of profit there.
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Yes, now that you mention it;
nice mountain peak, mostly valleys from there ,looked on a mountain chart also..
Investors Business Daily likes to look on the market, called ''M'';
even though NasdaQQQ has had a good run up from peak to valley , looks a bit bearish today.[lower high, lower weekly close, lower lo, lower daily close] And most remember the QQQQ $120 mountain top area, $20 or $21 area red candles crash or valleys.
AMGN is actually a better downtrend than QQQQ;
if you like to short single stocks.