The TA Study Lounge

[MACDad]

Thought I would throw this chart out that covers the Whoops theory and also "easy's" cardinal elevations, as a lesson of sorts to myself and perhaps others will gleam a bit as well.

And yes - I'm at work today, in case any last minute shoppers are looking for a Japanese Shoji Screen or a 140 year old Chinese Armoire - LOL - So -I'm a bit bored and thought I would bore some of you as well:)

Anyway, this is the story of BPUR. I found BPUR in my search to test the whoops theory. When I found this poor down-trotten little fella, it had just gone through a tragedy - it gapped down and it's poor little candle closed completely outside the lower BB.

However, it also had the cutest very slight print negative divergence on it's williams and cci8. (Special thanks to Easy for teaching me this important T/A concept).

Anyway - (follow the story now) - The next day, I watched on the 5 minute chart for a possible entry on a break of the previous days high. And there it was at the open! But - trying to stick with my trading rules, I waited for about an hour after the market opened and the let the little fella settle in a bit. Put my limit order in for .30 and - BAMMMM - I was in:) Weeeee

The first day in was pretty anti-climatic, because he ended up closing exactly at what I paid for it - .30 - but the indicators looked better and I had learned through some backtesting that with the whoops template - sometimes it was a slow - but steady ride and the moves takes a few days to kick in.

Fast forward a little, as I know some of your are busy getting ready for Santa and some are you are probably drunk:) LOL

Day 2 of my BPUR journey showed some improvement and we continued on together.

Day three improved a bit too - but I will admit I was a bit nervous with the appearance of a gravestone doji - but we continued on our journey.

Day 4 - very nice day for us - reached all the way up to .40 at the high of the day - making for over a 30% gain for me in 4 days. Indicators still looked good, so even though the little fella fell back quite a bit from the HOD, I decided to keep him.

Day 5 - News!!!! (funny how that happens) We start out with a very big day and bump our heads against some heavy resistance at .45 and then he fell back down and went boom:)

Now there is probably no doubt that I should have tried to exit my position into the excitement of the news - somewhere around .45 - (which would have been a 50% gain - if I had been smart enough to sell at the very top)

Instead of really looking at the big picture and using the tools I had to make an educated decision - I sold that day at .39 after it bumped it's head on .45 and fell back down.

Now - no matter what - it turned out to be a decent trade. I made 30% in 5 days on the swing. No sense in being greedy and I was very happy with my little fella BPUR.

The next 2 days - I kept watching and patting myself on the back for the slick exit I made. My little friend BPUR had changed directions! However, I kept looking at the chart and seeing that none of the key elevations in the indicators had been violated (again, credit to easy on this stuff).

So I kept watching and actually thought of re-entering on day 8, but I have this thing about going back into a stock that I just made money on - more often then not - I would normally give it all back.

Anyway, BPUR is still running and getting close to .50 and as I look back at the chart and insert the secondary elevations for a clearer picture, it's interesting to see how it all unfolded and I have to say - I learned a lot through my little adventure with little BPUR.

That's the end of my story - and here's the tale of the tape:)