The methodology behing this setup can be found here http://www.tonyoz.com/bottom.htm Is the first up day following three (or more) consecutive down day a good reson to buy a stock? Sometime! In the following posts you will see different Bottom-Fisher setups, and I will tell you why I like or dislike some of them. The first one is ESRX. I like this setup because the stock rallies after three BIG down days and after penetrating the lower Bollinger Band. Unfortunately, I can't put all these setups in one post, so it will take me a while (and many posts to complete this).
This setup is awsome. The stock broke out to the upside on 10/15 and penetrated the top Bollonger band. Then, the following three days it traded sharply lower and actually hit the Bottom Band. Normally, you can expect a bounce on the first up day.
AEOS was a big winner and showed up on the scan, but I wouldn't have traded it. Why? Because the pullback was not good enough for me.
This is another big winner, but I will not have traded it, because it does not have enough history! I want to see at least 60 bars on the chart.
Great of you to take the time to help us. This one only gapped up slightly at the open. How big a gap will you tolerate at the open to enter immediately? How do you handle those that show bigger gaps. Thanks
This one I like. The reason is that it bounced at the 20DMA. And you can see that the pullbacks have been small since it made the low in September.
Look at my great new pattern thread. This is the pattern I play exclusively. Look at pvn as an example today. (Long PVN MOC).
This one I would have passed on. It looks good, some of you may say. A bounce at the 20 and 50, why pass? Because, there were better setups today. If this was the only one, then maybe I would have entered it.