BA setup - possible short entry <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1072560>
BA entry - retracement, short entry not ready <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1072567>
Z's blew this one as you point out. This is a typical example of a stock going to the left side of the channel (where a person exits to take the dominant traverse profits as usual.) Whether a stock can stay on the universe and always comes up after profit taking and keeping the stock on the recently traded list. Here you get to see an event that puts BA on the shelf for a while. The retrace off the left channel ended at a certain point. See the gaussian Black Red take the price to the left line on the rising black and then see the price decline on the decreasing Red part of the gaussian. Z's can't see this for several reasons (see his posted chart) but we do by using this combo of P, V and the three indicators. When the Gaussian ended we are always especially alert for what follows especially if it is a few days of low volume and price compression of volatility. It is a classic Conners Hayward volatility compression also not mentioned by Z's. The Gaussian that follows this is where all traders get to see a retrace trun into a reversal. Most do not see this. This is the point where the A/D volume is composed of people being faked out on a retrace. In fact, Z's may be posting the chart as a long buy because he thinks the price is Cheap because of what he thinks he still sees as a deeper retrace off the peak. We all know the news context on this as well. So now as volume picks up out of the compression at the end of the retrace, we all see a Red Black gaussian on volume as you show us in your charts that are appropriately color coded. The new short channel is, at this point, established. The P, V is showing that for increasing V the P is going down, the definition of a short. The fast Stoch signalled the short as it passed through the 50% going down. The slow Stoch gave the first "hold" for a short as well. All is being confirmed by the MACD for a short trend as well. The second Red Black Gaussian is now coming to an end. During this second cycle of short the BA dropped through the original channel trendline, thus ending the overlap of the two consecutive channels. So for BA what is on the table to watch to make some money with it? The FTT of the short to go from the trendilne to the left channel line is the most important. Second look for the Red Black Gaussians to end as a Red to Red occurs to indicate that a new long IT trend is coming up. With both of these inplace, then a possibility exists for hitting a BA home run. That is, you get to enter right when a short IT is ending and the first dominant traverse of a new LONG is starting. there are about 20 of these getting set up right now and they all are showing a potential for 7 or 8% profit per day. They all are on the list of stocks I posted most recently.