Wednesday, April 09, 2008 4:26:15 PM
DIOM still following g-pattern; here's an example from http://www.3stocksonfire.com/trading/index.php?topic=2187.0
g1. Rises up heavily in price and volume. Volume is the key. It must stand out from past volume. This rise can last one day..and I would say a max of 7 days.
g2. Falls back for at least 2 days. It is very important that you have at least 2 days of fall back according to my research. Lots of fakeouts happen with just one day of fallback. Volume is generally less than the volume rise in g1. Also a rule I use is that the fall back should not penetrate the low of the low of the first candle in g1. Its a mouthful but the idea is that if this stock showed a strong volume + price rise.. you do not want this stock going back to the levels this happened from.. you want to see support.
TODAY IS DAY 3 OF g-2 FOR DIOM...STILL HASN'T FALLEN BACK BELOW THE LOW OF FIRST BIG CANDLE OF DAY 1 OF g-1.
g3. Breakout and Run tends to happen if high volume comes back in to push the stock past the highest close(or open, whichever is higher) of g1. This price is called the g-spot and just after the break of this spot on very high volume is imo the best entry. Penny stocks tend to run 100% or more from the g-spot. Higher priced stocks still run but not such a high % usually.
EXAMPLE ANNOTATED CHARTS (the yellow dotted line is the g-spot ---> for DIOM the g-spot is ~.05-.051):
GLTA ;o)
g1. Rises up heavily in price and volume. Volume is the key. It must stand out from past volume. This rise can last one day..and I would say a max of 7 days.
g2. Falls back for at least 2 days. It is very important that you have at least 2 days of fall back according to my research. Lots of fakeouts happen with just one day of fallback. Volume is generally less than the volume rise in g1. Also a rule I use is that the fall back should not penetrate the low of the low of the first candle in g1. Its a mouthful but the idea is that if this stock showed a strong volume + price rise.. you do not want this stock going back to the levels this happened from.. you want to see support.
TODAY IS DAY 3 OF g-2 FOR DIOM...STILL HASN'T FALLEN BACK BELOW THE LOW OF FIRST BIG CANDLE OF DAY 1 OF g-1.
g3. Breakout and Run tends to happen if high volume comes back in to push the stock past the highest close(or open, whichever is higher) of g1. This price is called the g-spot and just after the break of this spot on very high volume is imo the best entry. Penny stocks tend to run 100% or more from the g-spot. Higher priced stocks still run but not such a high % usually.
EXAMPLE ANNOTATED CHARTS (the yellow dotted line is the g-spot ---> for DIOM the g-spot is ~.05-.051):
GLTA ;o)
Buy the Titanic and Double Down on the Hindenberg!!!
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