Monday, January 09, 2012 12:28:33 PM
QUIK chart.
Big board stock trade different from OTC. Thing don't happen as quick normally. The rule of thumb for a pattern move is chart pattern projected targets, can take as long as it took to from the pattern, but usually hit projection in half the time.
So if a pattern forms over 3 months the move to target should last from 1.5 months to 3. This is how one determines how long to plan the trade for.
Example; I like to trade 2 week swing trade cycles. So I look for charts which form in around a month to a month in a half. Presently in ASBC,ETY,HST from last weeks strong watch list.Each entered on breakout from the pattern. And 14 days from entry, I'll exit no matter where the price is. If wanted gain and exceptable loss is not reached.
By locating trades this way you can plan your use of capital. I choose 2 week cycles because I want to turn cash around twice a month. I'll expect to see target in half the time the pattern formed, but exit on time hoping for at least half.
The business plan goal is to bank more profits then losses. Each trade is choosen to match my personal trading style and monthly goals should be half chart target projections.
You need to plan the trade. Event if you don't have a trading style or business plan. It's all in the numbers. If holding over a month to get target is to long for you don't play. If you'll be happy with any thing you get in 2 weeks then play. But don't excpect to get projected target of a chart pattern in less then half the time it take to form.
Your stocks chart has an ascending triangle pattern which formed over 3 months. The projected target is 1.20 above breakout of 3.05, at 4.70. So the plan would be 50% gain in 1.5 months with an exceptable loss 1/2 the gain 25% and expect it to be possible to only get half way there because it took 3 months to form. Want it all, then it's a 3 month trade.
Want gains banked quicker. Find another one, with a shorter pattern formation time.
Note my charts formed over 1.5 months for 2 week swing trade cycle.
Big board stock trade different from OTC. Thing don't happen as quick normally. The rule of thumb for a pattern move is chart pattern projected targets, can take as long as it took to from the pattern, but usually hit projection in half the time.
So if a pattern forms over 3 months the move to target should last from 1.5 months to 3. This is how one determines how long to plan the trade for.
Example; I like to trade 2 week swing trade cycles. So I look for charts which form in around a month to a month in a half. Presently in ASBC,ETY,HST from last weeks strong watch list.Each entered on breakout from the pattern. And 14 days from entry, I'll exit no matter where the price is. If wanted gain and exceptable loss is not reached.
By locating trades this way you can plan your use of capital. I choose 2 week cycles because I want to turn cash around twice a month. I'll expect to see target in half the time the pattern formed, but exit on time hoping for at least half.
The business plan goal is to bank more profits then losses. Each trade is choosen to match my personal trading style and monthly goals should be half chart target projections.
You need to plan the trade. Event if you don't have a trading style or business plan. It's all in the numbers. If holding over a month to get target is to long for you don't play. If you'll be happy with any thing you get in 2 weeks then play. But don't excpect to get projected target of a chart pattern in less then half the time it take to form.
Your stocks chart has an ascending triangle pattern which formed over 3 months. The projected target is 1.20 above breakout of 3.05, at 4.70. So the plan would be 50% gain in 1.5 months with an exceptable loss 1/2 the gain 25% and expect it to be possible to only get half way there because it took 3 months to form. Want it all, then it's a 3 month trade.
Want gains banked quicker. Find another one, with a shorter pattern formation time.
Note my charts formed over 1.5 months for 2 week swing trade cycle.
Welcome to my mind!
Success to all
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