Sunday, August 06, 2017 8:34:26 PM
INMG chart pattern
in terms of backgound, i was a math major in college, so i'm historically principled in logic. furthermore, as a published wordsmith, primarily interested in historical narratives, i've had to learn the art of reading for storyline. its from these two disciplines that i've tried to develop a constructive process for trading analysis by which i may extrapolate on what the past and present have to say about the future. that said, most of what i envision is internally orchestrated. iow, its all inside my head, and sometimes it gets a little muddled in there. otoh, the picture is often easier to see when there's a graphic illustration to lead the way. thus i come now to the visual aspect of chart study, and this is where i often struggle because pattern recognition is a weakness for me. fwiw, if a reader here wishes to correct or enlighten me on what i'm about to write regarding the pattern of this chart, i would be ever so grateful. i came to the Hub to learn and share knowledge. sad to say, that's not what IHUB is about.
that said, below is the 6 month chart for INMG. in mid April this had a run up a pole that took it from below .002 to a top of .032, a rather substantial gain. it then spent approximately 8 weeks in a consolidation phase resulting in a long bullish flag where the retracement took it to just above .008. if you draw a line through the bottom candles and wicks from first week of May to June you can see this flag on the chart below.
now this might seem a rather steep pullback, but considering from where this came from, that new bottom was a 4-5 bagger off the bottom of the pole. it was also close to a fibonacci 76.4 retracement, which i will discuss in another post. iow, this was a play that was calculable.
in early June, with the finishing of the consolidation phase, it took that long to absorb the volume from the run up the pole, there was another fibonacci move. this time a pole ran from .008 to .017, an exact 38.2 fib retracement from off the downtrend, and, then, as is common with the flag pattern, a cup and handle continuation followed. on the chart you can see a cup that runs from .017 down to a base at .006 before turning back up and filling the right side of the wall at .014. that .014, btw, is also represented on the left hand side of the cup. the handle was then formed, took a little more than a week to play out, and then the right side retraced back up to the original .017 top of the cup.
pattern-wise, this stock is now ready for the next installment, a run up a pole. we're going to see shortly what kind of pattern reader i am.
on the chart i see recent historic resistance at .0188, .02, and .024. i believe we will see these points this week.
in terms of backgound, i was a math major in college, so i'm historically principled in logic. furthermore, as a published wordsmith, primarily interested in historical narratives, i've had to learn the art of reading for storyline. its from these two disciplines that i've tried to develop a constructive process for trading analysis by which i may extrapolate on what the past and present have to say about the future. that said, most of what i envision is internally orchestrated. iow, its all inside my head, and sometimes it gets a little muddled in there. otoh, the picture is often easier to see when there's a graphic illustration to lead the way. thus i come now to the visual aspect of chart study, and this is where i often struggle because pattern recognition is a weakness for me. fwiw, if a reader here wishes to correct or enlighten me on what i'm about to write regarding the pattern of this chart, i would be ever so grateful. i came to the Hub to learn and share knowledge. sad to say, that's not what IHUB is about.
that said, below is the 6 month chart for INMG. in mid April this had a run up a pole that took it from below .002 to a top of .032, a rather substantial gain. it then spent approximately 8 weeks in a consolidation phase resulting in a long bullish flag where the retracement took it to just above .008. if you draw a line through the bottom candles and wicks from first week of May to June you can see this flag on the chart below.
now this might seem a rather steep pullback, but considering from where this came from, that new bottom was a 4-5 bagger off the bottom of the pole. it was also close to a fibonacci 76.4 retracement, which i will discuss in another post. iow, this was a play that was calculable.
in early June, with the finishing of the consolidation phase, it took that long to absorb the volume from the run up the pole, there was another fibonacci move. this time a pole ran from .008 to .017, an exact 38.2 fib retracement from off the downtrend, and, then, as is common with the flag pattern, a cup and handle continuation followed. on the chart you can see a cup that runs from .017 down to a base at .006 before turning back up and filling the right side of the wall at .014. that .014, btw, is also represented on the left hand side of the cup. the handle was then formed, took a little more than a week to play out, and then the right side retraced back up to the original .017 top of the cup.
pattern-wise, this stock is now ready for the next installment, a run up a pole. we're going to see shortly what kind of pattern reader i am.
on the chart i see recent historic resistance at .0188, .02, and .024. i believe we will see these points this week.
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