Wow, I didn't get off so easy, he hit me up for 5K. W fought, we haggled, ultimately I settled for 500/mo but for 12 months. Just kidding. Anyway, today's trade stayed within the non-geometric pattern I have drawn. In fact, one might say the high for today found resistance at the non-geometric pattern upper boundary. So that's my story and I'm stickin' to it. REGARDLESS, it is clear that price is consolidating again, and the lines I have drawn provide a visual means of seeing that. Of importance, look at the volume. This is exactly what you should see in consolidation.
Wow, a 2 for 1 deal, in favor of the seller. It's new millenium marketing at its best. Okay just kidding. Please, let's not get too far away from the topic. Btw, if anyone is drawing the lines differently, it would be great to see. And I will post an attachment for the NR/ID list from Tuesday later this morning. The list is much shorter than the previous one.
Today's update. With all of the excitement I just want to point out that this is just an example of a geometric pattern, imo. There is nothing special about this particular example. The pattern is 10-11 bars long so we are in the classic range for pattern break. As before, clearly there is consolidation taking place, and support at the lower leg of the triangle. Volume was miniscule today, and although I did not point it out yesterday, the very narrow range inside day afforded a shorting opportunity today. Yes I mention it after the fact, but it did regardless.
thats why i say post the plan before the fact. but fine dont listen. this exercise is of little value otherwise.
The plan of this thread is as stated above. The usefulness comes from having the patience to watch the pattern presented here, and perhaps even find some of your own to watch too. And reading about these patterns. I am just regurgitating what I have read and then experienced. Trading the daily chart is slow. Trading small size like 100 shares is slow. Trading narrow range inside day breaks is slow. And slow is what someone who can't seem to figure out how to trade needs. Btw, did you take a look at the list of symbols I sent you? I mean really take a look. I presume you have charting software, but if you don't stockcharts.com can be used to follow NR/ID.
It is nice when patterns cooperate. We are not getting the classic volume signals. Again, this particular stock is nothing special, but it has twice given us an opportunity to follow consolidation.
One of the topics of this thread is the NR/ID setup. I have pointed out to some privately, that the full setup is nice, but a very narrow range day, regardless of vehicle, is a nice setup by itself. I have 3 1/2 months of data on a chart so the bars overall aren't big, and the narrow ranges really standout. On the daily chart, take a look at the trading range of the Dow for Tuesday. I would subjectively call that a narrow range day. And look what followed it. Take a look in Sep also. Beginning on the 15th. NR day...bang...NR day...bang...NR day...bang...NR day...bang! Yes there are outside days too, and oh my gosh you might have to stop and reverse or employ actual trading skills, but the narrow range of the preceding day narrows your risk as well. Btw, today is shaping up to be a ........? Watch out though, we are trading in a band of three very popular sma's.