SMART MONEY GROUP

[ospreyeye]

DGLY Chart: What a sweet run......amazing % gains for this big board monster.......just goes to show, who needs penny stocks when big board plays like DGLY are returning fat profits?............stocks like DGLY give traders a reason to rethink their game plan and a good reason to start looking beyond the OTC for winners if you haven't already...........

Now back to DGLY and today's chart.........big move today on a big gap higher open........this has created a pattern that is very strong and should not be overlooked.........today's candle is also forming completely above the Upper Bollinger Band @ 20.96........this shows the current move is unsustainable........the upper BB is the 1st support level on a pullback..........my advice for today - TAKE YOUR PROFITS!!!!!..............................$$$

http://www.candlesticker.com/Pattern.aspx?lang=en&Pattern=4201

BEARISH THREE GAP UPS

Definition

This is a four day bearish reversal pattern. It consists of three consecutive days each gapping higher on the open. After Three Gap Ups the market becomes extremely overbought and ready for the reversal of the current uptrend.

Recognition Criteria

1. The first day can be of any color.
2. The second day also can be of any color, so long as its body gaps up away from the first day’s body.
3. The last two days are white and their bodies must gap up from the bodies of the prior days.

Pattern Requirements and Flexibility

The first two days of the Bearish Three Gap Ups can be of any color but the last two days should be white. There must be upside body gaps between the candlesticks.

Trader’s Behavior

The market is overbought with three gaps up in a row and it is time for profit taking.

Sell/Stop Loss Levels

The confirmation level is defined as the midpoint of the last white body. Prices should cross below this level for confirmation.

The stop loss level is defined as the higher of the last two highs. Following the bearish signal, if prices go up instead of going down, and close or make two consecutive daily highs above the stop loss level, while no bullish pattern is detected, then the stop loss is triggered.