Golden Agri
The flag pattern continued to take shape. It is looking even better than on Monday when I first mentioned about it. Again, a chart pattern is not valid until it is completed and when the breakout takes place.
The correct way to trade chart pattern is to spilt your positions into three batches. 30% buy during the formation ( this is called the "probe", aimed at taking advantage of the lower entry price but risk if it is a false pattern ). 30% on breakout, 40% on completion of the return move ( or throwback ).
SMS alert can be used to help monitor the breakout during your business day. Set the alert to the expected breakout price ( say .495 ) and volume to 150K ( which is the average volume for a full day, on breakout, this volume should be achievable by mid-day because full day volume should be double ).
The correct way to trade chart pattern is to spilt your positions into three batches. 30% buy during the formation ( this is called the "probe", aimed at taking advantage of the lower entry price but risk if it is a false pattern ). 30% on breakout, 40% on completion of the return move ( or throwback ).
SMS alert can be used to help monitor the breakout during your business day. Set the alert to the expected breakout price ( say .495 ) and volume to 150K ( which is the average volume for a full day, on breakout, this volume should be achievable by mid-day because full day volume should be double ).
Labels: Stock Pick
posted by Market Wizards @ May 14, 2009
Comments: 0
