TSCM - Monthly Pullback Candidate

Just going to post some charts here. I will do three in a row. First the Monthly, then the Weekly, and finally the Daily chart for TSCM. They are all log scale.

Banker

 

TSCM-Weekly chart.

 

TSCM Daily chart.

 

I'm just thinking about a simple trade with TSCM.

-Buy when it crosses the white line to the upside.

-Set an initial sell stop below the yellow line to get me out of the trade if I am wrong.

The bet is that the long term trend will resume if TSCM trades above the white line.

I would follow the trade with my standard trend following tactics if I am right.

Banker

 

TSCM traded above the white line.

Banker

 

If it gapped up tomorrow in the range of $4.65-75 I would get some. I have never used the setup you are using but it looks good. Just my guess, my opinion is quite often worth about what you pay for it.

Max

 

This is the first time that I have traded this setup. I'll post here when I exit the trade.

It's kind of difficult to stomach the idea of buying into all of that congestion on the daily chart. I think it's necessary to make some assumptions when trading pullbacks though.

I bought ARLC today as a pullback. That was a pullback on the daily chart, not the monthly.

Good luck to you in your trading,

Banker

 

It seems to me that the setup wouuld be even better (and it's pretty good as you present it) if there were a higher reaction low on the daily chart prior to a breakout through the white line. Most often the ascending reaction lows demonstrate that upward momentum is truly under way.

 

I agree, a higher reaction low would be nice. I suppose if you look at it post "breakout" there is one. Pretty minor though. I decided the swelling volume with the bullish wide range bar were enough evidence to place the buy stop. It's nearly impossible to find the "perfect" setup or candidate, so I usually end up settling with something I deem "good enough".

TSCM closed pretty well. It looked a little shaky post "breakout" during the day. We'll have to wait and see what happens with the big picture.

Banker

 

I sold TSCM today. The first arrow points to my entry on the attached chart, the second arrow points to my exit.

Banker