You always have to anticipate. As soon as I saw the last let of a potential catapult forming I placed a limit order to buy if the catapult was confirmed, and to short ONLY IF the next 0 column would exceed the previous 0 column.
Here is the AKAM chart with stops and entries. It is up to you to decide each time whether the risk/reward ratio and projected targets are within your money management strategy.
One other comment. I showed where my stops would be on akam. Normally what I really do is consider what is happening. If a false sell signal occurs during an uptrend I will keep moving my stop up to 1 box below the last 0 column. This is because I am trading with the trend. I will try to ride this as long as possible depending on s/r. If a false sell signal was during a downtrend, I would exit after the first column reversal of the chart that gave me the signal because now we are trading countertrend.
Here is one for you swing traders. We have a stock about to make a move. Whichever way it goes it will most likely be a pretty strong move. Stock is USB. The stock is sitting at 33.30. At 36 it becomes a bullish catapult. At 31 it becomes a failed bullish catapult. If I had to guess I would say the stock is going to move up even though at present we are in a O column on relative strength.
A really good thread on P&F was just opened yesterday over at Traders Laboratory. If you are a P&F enthusiast and not just dabbling this thread is a must. It has great potential. I'm looking forward to it. If you are not familiar with Traders Laboratory its hands down the best trading forum out there. Its not so amatureish like Elite Trader. Any way this thread was started by two graduates of the wyckoff stock market institute. If you are not familiar with that school its probably the best one that exists for technical analysis. Heres the link http://www.traderslaboratory.com/forums/f131/point-and-figure-charting-3889.html
Looking back to some stocks that were mentioned on this thread last week. The ticker symbol TIF looks like it will be in play this week. I would like to get long this in the 46.00- 45.50 zone
There was also some comments on ABX last week. It looks like getting long was a good idea. It recently bounced rather nicely.
It's not just a double top, it is a potential catapult. A catapult is a triple top immediately followed by a double top with higher lows. The chart is current.