There was sideways action for two hours and then the price surged upwards, beyond the .
Currently, all three top indicators are strong.
This morning I was more than . I was waiting for a sell as confirmation. Look at the one red bar at 9 AM (CHOP ZONE below chart).
This was a failed move. A sell was not generated.
These three down Fractals prior to the buy were not valid.
The price action that generated each down red arrow was above the alligator's teeth and/ or inside the jaws. Thus, they were NOT VALID.
As for now, the first upside test is likely to be $46.53.
I believe this upside move is a range bound trade. Why? I do not see CHOP (below the chart) under the shaded area.
This suggests short covering rather than a large upside move.
I have to await a sell to build my case for a resumption of the down move.
I plan to issue an update at that time.
Good luck to you. Don.
I will attempt to explain what I do and how I do it. Here are my RULES OF ENGAGEMENT:
I became a better trader once I had a mindset change. One of the largest drawbacks for people wishing to learn to trade is they get sold on a method that is reliant on the computer for its indicators. Markets are fractal in nature and fractals do not lend themselves to being measured with linear technical indicators. Yes - I use indicators to confirm or deny the fractals. The beauty of fractal design is that each new iteration, or pattern, is slightly different than the previous pattern.
While the human eye is very good at recognizing a slight pattern shift, a computer is not. The computer calculates exactness, and trading is far from exact. In a fractal world, each new pattern is a slight variation of the previous pattern -- think of the branches of a tree, or the waves hitting the beach - where after even just a handful of samples that difference will have increased enough to have thrown off the computer. Another advantage of fractal patterns is they are easy enough to see over different time periods, which makes them easy to collate and record, i.e.: they lend themselves well to bench-marking.
My trading approach involves five different perspectives: 1. Momentum. 2. Change in the speed of current momentum. 3. Appearance of an initiating fractal. 4. Zonal influences. 5. Balance Line differentials.
Part 6. Trend. You must have trend. I have used indicators since 1983. They would work sometimes and then not work sometimes. 20 years ago I found that fractals and CHOP were my main indicators for trend. The alligator became my compass (direction), and AO for energy, RSI and MACD for momentum. Fractals tell me emotions of the trade. Fractals are non-linear. I follow them. I "move when the market moves". If I used just indicators, and only 5% of stocks are in strong trends, I used to scratch my head a wonder why the indicators didn't work. Today, if CHOP isn't below the shaded area, I would be caught in zig-zag "noise". Most stocks are NOT trending. Stocks inside the shaded area will most likely waste your time and waste your money. But if you do your homework you will find the strong winners. Personally, I would rather do the research and select high probability stocks that TREND.