nmike

HOW TO CATCH THE BIG ONE.

BATS:POT   None
1
The BB(100) has ability to show when a stock is in a strong BULL or BEAR phase as you can see in this chart of POT. During the strong BULL phase the price stayed outside of the BB(100) for almost 2 years.However during the run up we had a few big red candles that dipped below the BB which might have scared you out of the trade.In most cases I would want to see a full tall red candle completely inside the BB in order to close the position.Another method to confirm the end of the trend, is to use the DPO with a setting of (10) and SAR(.02,.02,.06). A final top is over when you have a big red candle completely back inside the BB, a SAR reversal and the DPO below "0". This method(weekly charts) is especially handy for PUT buying.


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