Rocket Rollouts and Rocket Launches

Discussion in 'Technical Analysis' started by Rawket Rohlout, Sep 8, 2006.

  1. "Rocket Rollout" trade setups and "Rocket Launch" trade setups.

    Variations of the Rocket Rollout and the Rocket Launch trade setups have been previously described as the 'Bruno R' setup and the 'Rocket' setup
    respectively in "Spydertrader's Jack Hershey Equities Journal II"

    Before a rocket can blast off, it gets 'rolled out' to the Launch pad.
    The "Rocket Rollout" setup looks for the Daily (5,2,3) stochastic to move up from below its 20% line and roll out towards 100%.
    When the Daily (5,2,3) gets up to the 50% area and the (5,13,6) MACD histogram moves up to zero or higher, this is a signal to 'get in' or 'get ready to get in' within the next 1 or 2 days if/when volume and price action is strong. That's it.
    When the events noted above take place, the other stochastic, the Daily (14,1,3) stochastic, will often move above its 80% line. This places the rocket in the Launch area where it becomes a potential "Rocket Launch". If it stays above the 80% line over the next few days, this can be a 'hold signal' in anticipation of an upcoming "Rocket Launch".

    The "Rocket Launch" setup looks for the Daily (14,1,3) stochastic to roll out above its 80% line, which places the rocket into the Launch area. To get the rocket onto the Launch pad, look for its %K and %D lines to entwine/cross each other more than one time while still above the 80% line. This action can create an effective basing Launch pad that puts price in position to blast off and rapidly rise higher. Be prepared to get in for the ride if it blasts off.

    I have been trading for a short while, and I am not a full time trader. My intent for this thread is not to be an instructor to others. In the spirit of continuing to refine my understanding of 'Rocket' related trade setups, I put together some charts on AKAM that illustrate the "Rocket Rollout" and the "Rocket Launch" trade setups. These charts have been useful for me, and they may be useful for others as well, so I have posted them here. There are numerous variations and time frames for 'rocket trade setups', and you are welcome to add your own chart examples of 'rocket' related trade setups here for others to view and learn from as well.
  2. No rocket rolled out yet.
  3. Rocket Rollout begins.
  4. Rocket Rollout progressing.
  5. Rocket Rollout, Get in.
  6. Rocket Rolled out successfully above the 80% line, which places it in the Launch area.
  7. Launch Pad prepared, which sets up countdown for a potential Rocket Launch.
  8. Rocket Launch successful.
  9. Rocket rising, Price continues to increase.
  10. Excellent commentary. Thank-you for re-posting the nrTC explanations.

    - Spydertrader
    #10     Sep 8, 2006