Simple Chart Review (Ultra Novice)

Discussion in 'Technical Analysis' started by NuclearCricket, Feb 1, 2018.

  1. Is this considered a measured move and if so, did I place my price target correctly?

    What I'm assuming is that there is an advance off support, followed by a consolidation channel with a breakout there at the end.

    Is it cool if I post charts every now and again for technical analysis review? It'd be helpful to have some criticism.
    DaveTrader95, lolTRICKDu and aldrums like this.
  2. aldrums


    You can post charts all you want. There are no rules...this is the Internet!!

    Regarding the price target on your chart, this stock has had an amazing run. If the bull market in the NQ continues, it will probably get there. IF. I am not sure if you are using some Elliot wave or Fibonacci thing here, but I would never put a price target at a price a stock has never been at before. You want to buy support, sell resistance.
    Last edited: Feb 1, 2018
    lolTRICKDu likes this.
  3. SteveM


    OP -Just one guy's opinion, but the problem I have with what you are doing there is that I think you are using a 2nd leg as your 1st leg. I would use the strong first leg from the beginning of December (57.50-67.50) as leg 1, and project up from there.

    I like to think of measured moves from a rocket-ship mentality. For the leg 1 blast off I want to see a strong breakouts with several consecutive green bars, preferably with little overlap - the leg 1 is your blastoff, and I am buying high in this blastoff, hoping the blastoff provides enough gentle drift so that price will float up to my 1X MM target. Interestingly, you can see that some profit taking took place at the various 1X targets I've laid out below.

    As soon as I see the first red bar, my leg 1 ends and I project up from there:

    ATVI MM-low.png

    Depending on context, sometimes I will adjust my target to account for the pullback:

    ATVI MM-pb.png

    If I am really confident about the breakout leading to a large move, sometimes I will ignore my "leg 1 ends at first red bar" rule and use a more aggressive target:

    ATVI MM-higher.png
    lolTRICKDu likes this.
  4. I personally love this thread topic and would love to see a whole lot more of these. I, for one, could post plenty of charts that would give the experienced traders here lots of laughs and me lots of education.
  5. Thanks everyone!
    lolTRICKDu likes this.