lauralea

Cup and Handles ABC Bullish

Long
NASDAQ:NEO   NeoGenomics, Inc
Complicated chart but very bullish! Long term uptrend on monthly

Large effective volume today with a pocket pivot in last 5 days.

Price forms a pocket pivot , when:
The price goes up compared to yesterdays close.
The volume today is higher than the maximum down volume of the past 10 days.

Effective Volume analyses the intraday volume on the minute level to determine what small and large players are doing in terms of accumulation and distribution.

I saw this on Chartmill and thought I would share. I will let anyone interested figure out the targets. I own this long term but by no means recommending it. We are all different

2 Cup and Handle patterns. Targets are estimated by taking the previous high of the cup and subtracting the cup low = depth. Add a tad to be sure that price clears the prior resistance and that is long entry level. Take the cup depth and multiply this number by 0.38, 0.62, 0.79. In a very bullish market, or stock, you can add 100% to long entry level, then 127% and even 162%. These last 3 targets are usually T2. Stops are usually placed under the handle low or mid cup.

On the ABC bullish pattern , it works basically the same way except the AB leg is used to calculate targets and these are added to LE price. Long entry is when price breaks the BC leg in an uptrend. And your stop goes below C.

I am sure others do this differently, just basically explaining one way to calculate targets.

And any pattern can fail. Nothing is fool proof in the markets.

HL (Handle low) LE (Long entry)

Feel free to comment
Comment: Some stocks will hit long entry level just to pull back again. Visa did this a few times. I have noticed stocks that were in a rectangle, often pull back to the safety of the rectangle. Always have to look for gaps under your entry level as well. Not all gaps fill. Take off gaps, like ZS, are least likely to fill. But eventually, maybe even months or years, that gap can still come back to haunt you. So I try to go with the trend but always respect a gap. I am still learning and Patience is definitely a virtue when it comes to trading
Comment: another good time to enter, buy, is when the 5 day moving averages croses the 20 day MA
Comment: crossesup through 20 day MA/sorry
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