Wednesday, August 24, 2005 2:48:37 PM
the magic box guidelines are just that: guidelines. while one who looks for them must not become too lenient for what defines a magic box for a specific stock, one must also not become too rigid. you will miss out on possible huge gainers if you are greatly bound by the rules.
here is a great example of a floating magic box. i told you about lenf/aid. it was the stock that released some news midday. everything happened at once on the 11th of july. the day before there was a down day. the next started as an up day. so there are the two candle components for the overall candle setup. by the time that that happened, the williams was already confirming. on the 11th you also got the aroon crossing. everything happened so quickly, with the williams confirming 3 market days earlier. if one had said, "well, the williams already confirmed. i don't want to jump in becuase of that," he or she would have missed out on a one day jump of about 70%.
i like that you're noticing the fine points of the magic box, pug. that is great. i would rather see someone stick to the components of the magic box as if they are set in stone than if someone used them way too leniently. on the other hand, if you're getting confirmation independent of time, use your own discretion.
without the inclusion of the charts, here is my exact post right before the huge move for lenf (now aid) started:
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LENF Charts - Mid-BB Magic Box Confirmation
LENF was just approved for listing on the AMEX, which will start 7/15. Aroon Down crossing Aroon Up just below 70. Williams confirmation. Nearing a Magic Box confirmation in weekly chart, too? To be honest, I think that LENF is a wonderful opportunity for substantial gains. Unless the charts tell me otherwise, I would not settle for anything less than 50%.
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i made no mention that the williams already confirmed, but i did note that it was confirming. perhaps i blurred the magic box confirmation guideline, but, again, remember... a "guideline" is just a guide. it's not a policy.
good question, pug. questions are always good. they help you define your focus.
here is a great example of a floating magic box. i told you about lenf/aid. it was the stock that released some news midday. everything happened at once on the 11th of july. the day before there was a down day. the next started as an up day. so there are the two candle components for the overall candle setup. by the time that that happened, the williams was already confirming. on the 11th you also got the aroon crossing. everything happened so quickly, with the williams confirming 3 market days earlier. if one had said, "well, the williams already confirmed. i don't want to jump in becuase of that," he or she would have missed out on a one day jump of about 70%.
i like that you're noticing the fine points of the magic box, pug. that is great. i would rather see someone stick to the components of the magic box as if they are set in stone than if someone used them way too leniently. on the other hand, if you're getting confirmation independent of time, use your own discretion.
without the inclusion of the charts, here is my exact post right before the huge move for lenf (now aid) started:
---
LENF Charts - Mid-BB Magic Box Confirmation
LENF was just approved for listing on the AMEX, which will start 7/15. Aroon Down crossing Aroon Up just below 70. Williams confirmation. Nearing a Magic Box confirmation in weekly chart, too? To be honest, I think that LENF is a wonderful opportunity for substantial gains. Unless the charts tell me otherwise, I would not settle for anything less than 50%.
---
i made no mention that the williams already confirmed, but i did note that it was confirming. perhaps i blurred the magic box confirmation guideline, but, again, remember... a "guideline" is just a guide. it's not a policy.
good question, pug. questions are always good. they help you define your focus.
goosemeister@hotmail.com
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