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However, now that the move has happened try to avoid the impulse of buying right now. Wait for the move to play out and peak. On other more well known charts that have high percentage quick shooting star candlestick moves, a certain person usually shows up after with a video, for instance...
Ways I look at to get in after the move has started and people already are piling in (or bagholders running out) Any method whatever happens to show up works:
1) Wait for a halfway or so pullback then consider a long position if the macd is still above 0 in an uptrend. More exacting traders might use a fibonacci retracement tool and look for a retracement at 38.2% or 50% or 61.8% levels. Any lower levels below 61.8% represent the trend is broken and buying may not work then. A bounce off the 38.2% is the sign of a strong trend, and 50% happens often and is fine and easy to measure as halfway of the upmove, 61.8% works good too.
or 2) Some people might draw a small downward line from the peak that follows the price down. No exacting technique just draw a small downline just above the pullback that loosely follows it down. They then wait for it to break across that couple of bars trendline down, to start the uptrend bounce.
or 3) Others might draw a downward line on an indicator on two next to each-other peaks on the indicator line for a break. They say if it works on the price chart then it works on the RSI or a similar indicator for exzmple.
or 4) Others might wait for the last "power hour" to anticipate a close above the high of the lowest day in the past on the dip and get in before close.
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708 Quince Orchard Road
Suite 205
Gaithersburg, MD 20878
United States
301-869-9683
http://www.opgen.com
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