Howdy 123tom, I just read post:
"when it was peaking around 9 dollars, and I was first starting to analyze the chart, it looked overbought. the math target zone was really closer to 8 dollars as a finished rally on the math chart, so I watched this 9 dollar zone with great caution. The first pullback targets on the math chart were down at 6.50-6.00 area, and I actually started buying first position at 6.50. then 6.15 on that first plunging day. The technical chart was not looking at prices below 5.00 area, maybe 5.75 would hold ok. and if it somehow did fall more, the 5 dollar support looked very strong."
I'd like to look past and future with you.
If someone said to you right now, based on two generally accepted premises, that MRKR is currently undervalued and MRKR has big "potential" and in the absence of any large good or bad news … draw a chart for the next 6 months or next 12 months.
Just based on "I've seen it hundreds of times already", would not your chart just (generally) be a stairstep up with (generally) higher highs and (generally) higher lows?
Whether it gets up to $9 or $12 in whatever period of time, just based on odds and probabilities having seen the pattern repeat hundreds of times, you kind of know what "SHOULD" happen.
Bounce between 5 + 6 for a while, then bounce between 5.5 + 6.5, then 6 + 7, etc. … I mean generally, that should be the course.
Also, sticking in the future, IF/WHEN we get that piece of great news and IF/WHEN we get the Giant Up in price, what will "most likely" happen next, at some point in the near future, based on odds and probabilities?
Would it be, some kind of price drop due to profit taking?
For that case, I use staggered trailing % stop losses.
Looking to the past, my phycology of the day driven rubber band said "NO WAY this gets below $6" simply because $6 was 150% of what the "smart money" bought in at.
When it got below $6, rubber band just moved to $5, simply because I did not think we would get to be allowed to buy at or near "smart money" valuations.
The main differences between my rubber band and your charts is my rubber band takes less work, but your charts may do the "bands" more well defined and accurately.
