Classic Geometric Patterns and Narrow Range Setups

Yes - and the white dotted is the 20sma (as you state), the red is the 200sma. Just noticed these were not labeled on the chart.

 

Hi Again, Folks.

I read with interest various posts on TASR and decided to check out this stock. Honestly guys, do you wish to trade such a volatile stock? Yes, you could make a ton of money if you get it right. On the other hand, you could lose your pants and more. Anyway, for your benefit, I have attached four charts on TASR.

Chart1 shows the bounce stopped at the fibonacci retracement of 61.8% of the first KILLER sell-off. Chart 2 shows that after reaching the resistance at the 61.8% level, TASR decided to consolidate a bit, and has given back 38.2% of the rally. Chart 3 shows a closer look at intraday charts, and clearly if you are a wave-analyst you would be careful about being bullish on this chart at current levels. Finally, chart 4 tells us that unless we break above $44, we could easily come off. So be careful, my friends. There are lots of ways to make money, and the easiest way is to choose a well traded stock. You may not make your million in a few trades, but you will have enough to go on a vacation when you choose to. Good luck. (by the way, did you check on my preious post on the QQQ.). Cheers and good trading.

 

Here is your first of four charts on TASR

 

Here is the second chart (IS there a way I could upload multiple charts??)

 

Here is chart 3

 

This is the last chart on TASR.

Go back to the main message once again and think about it.

Good luck and see you again sometime.

 

How would you determine in which direction NVEC , or any other stock, should move after completing NR7? Are there any rules for that or you just go with the direction of a majority of the bars in the NR7 ?
hombre

 

Sometimes the NR7 patterns form geometric patterns along the way. There is some directional predictability to these patterns... although a failed pattern is just as valuable as one that doesn't fail. An excellent site to review these types of patterns is www.chartpatterns.com.

As far as I know from reading several authors and in my experience, the NRID patterns themselves are not directionally predictive. That said - there are predictive candlestick patterns that occur within these setups.

 

yes lets do that. thanks for taking it up.

 

If you are a professional, disciplined trader you should never lose your pants on TASR or any other stock (read: stops).

TASR actually is a very low risk set-up in the scenario I presented (which, is the appeal of most NR/ID strategies). But, I added the caveat that earnings were coming out. I would never hold it through earnings.