A very high probability setup - AMR

Discussion in 'Stocks' started by SomeDude22, Jan 23, 2007.

  1. If you find a stock trading in a long-term channel - in this case, AMR on the 5's intra-day - there is a very high probability it will stay in that channel (resistance not drawn) but every once in a while it will trade into a spike that goes outside the channel, which can be considered an outlier. Today, AMR traded into a persistent downward channel on the 5's and traded outside of the channel for a very short period of time. That brief move outside of the channel was met with massive buying, which is an immediate long trigger. Moves like this tend to reverse the trend, at least for the time being.

    The other 2 charts forthcoming.
     
  2. Gas prices go up, airlines go down.
     
  3. attached is the 1's.
     
  4. and finally the result