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Re: TruthSpeaker12 post# 86873

Wednesday, 01/10/2018 11:33:33 AM

Wednesday, January 10, 2018 11:33:33 AM

Post# of 106837
I was asked about the charts and patterns forming. I take a more basic approach to charts that I find more accurate than looking at cup and saucer or head and shoulders or 3 soldiers or crouching dog. Today we had a golden cross on the 30 minute chart. That is a very good sign over the next couple of weeks.

Among other things, I also watch the bollinger bands because they pretty accurately show a price range the stock will find. As the bb's move together it is called a "bb squeeze." Getting a BB squeeze while the macd is positive, while the 50ma crosses the 200, while the RSI is in the 50-70 range - these are very positive signs. One indicator means very little, several of them show the strength or weakness of the stock.

We were headed for the golden cross before the ED PR and the BB's were starting to tighten a lot. Without the news, we likely would have tested .05 early next week. With the news, we got a nice boost faster than the charts predicted, so there is indecision today - the bb's are like a rubber band pulled tight. The news caused the rubber bands to get a bit looser, based on the widening of the BB's and a lack of volume, but the other indicators show a positive movement over the next couple weeks.

Today could possibly be up 20% or down 5% just as easily and it won't matter either way for the outlook for the next week or two. Over the next week, the chart should be moving up in a pretty decent move. The BB's are already tightening again and the lower BB is the support just as the upper BB's acted as resistance yesterday. It should stay within the BB's until we squeeze and then expect a huge rise.