Global Developments Inc (GDVM)

[tothe]

Chemist72; It looks like .0210 is the final shakeout in a very familiar pattern. We should zero in on an recognizable doji as the reversal candle but I think a buy anywhere in the 0210's would also do the trick.

~~~ The stock rallied hard to $0.0303 (see chart). It then pulls back real nicely into $0.0215. This would have been a "nice pullback" to trade but a lot of stop losses were taken out..
It rallies up a little bit $0.0260, again to $0.0281, but each time it fails and goes right back down. This traps the swing traders who are long this stock. They put their stop loss orders under the first rally attempt. But, when the stock fell to $0.0260, it took out their stop loss orders.
Now that the majority of sellers are out of the trade, the stock can rally.

~~~ How To Trade This Pattern: The key with this chart pattern is to look for the "shakeout". The final swing MUST go below the low of the first swing (like $0.0210). Many times, this final swing will end in a hammer. This hammer will take out all of the stop loss orders or none if there is total exhaustion and we are ready to go!

~~~ The Entry: Wait for a candlestick pattern to develop on the final swing (in most cases it is a hammer). Then one you can buy the stock on the day of the pattern, or two wait, put in a buy stop above the high of the candlestick pattern.
It's up to you how you want to enter the stock.

https://stockcharts.com/h-sc/ui?s=GDVM&p=D&yr=0&mn=4&dy=10&id=p24986097784&listNum=23&a=1113701411