Bots Inc (BTZI)

[ospreyeye]

MCIG Chart: I posted a chart over the New Year break after the big drop putting MCIG on bounce radar........Bullish Harami reversal pattern formed on the 2nd........the Buy signal was confirmed the next day by the green candle & higher closing share price & it was off to the races again.........MCIG is on an 8 day run to start the New Year.......impressive.......after the initial bounce the daily gains were small and other MJ plays were smoking.......MCIG quietly hung in there and has turned out to be one of the very few MJ stocks we track & chart that has yet to pull back........& right now we have 38 on the list..........

Instantly I think of 3 things!.......this can't last, take those profits & the bears are going to attack).........

Next I look @ the candlestick pattern......what is that telling me?..........HANGING MAN......one of the most common bearish reversal patterns........checkout the Hanging Man formed the 1st week of Sept. and what followed..........

BEARISH HANGING MAN

http://www.candlesticker.com/Pattern.aspx?lang=en&Pattern=1201

Definition
The pattern occurs at the top of a trend or during an uptrend. The name Hanging Man comes from the fact that the candlestick looks somewhat like a hanging man. It is a single candlestick pattern that has a long lower shadow and a small body at or very near the top of its daily trading range.

Recognition Criteria
1. The market is characterized by a prevailing uptrend.
2. A small real body at the upper end of the trading range is observed. The color of the body is not important.
3. The lower shadow of this candlestick is at least twice as long as the body.
4. There is (almost) no upper shadow.

Pattern Requirements and Flexibility
The body of the Hanging Man should be small. The lower shadow should be at least twice as long as the body, but not shorter than an average candlestick. It is desired that the upper shadow is very small, or better nil. The top of the Hanging Man’s body should be above both of the two preceding white candlesticks.
Trader’s Behavior

The Hanging Man is a bearish reversal pattern. It signals a market top or a resistance level. Since it is seen after an advance, it signals that selling pressure is starting to increase. The long lower shadow indicates that the sellers pushed prices lower during the session. Even though the bulls regained their footing and drove prices higher by the finish, the appearance of this selling pressure after a rally is a serious warning signal. If the body is black, it shows that the close was not able to get back to the opening price level, which has potentially more bearish implications.

Sell/Stop Loss Levels
The confirmation level is defined as the midpoint of Hanging Man’s lower shadow. Prices should cross below this level for confirmation.

The stop loss level is defined as the higher of the last two highs. Following the bearish signal, if prices go up instead of going down, and close or make two consecutive daily highs above the stop loss level, while no bullish pattern is detected, then the stop loss is triggered.

Next I look at where the candle formed on Monday.........the real candle body formed above the Upper Bollinger Band.........this is unsustainable.......I must type that sentence dozens of times a day..........candles formed above the Upper Bollinger Band are signaling that the move is unsustainable and that the candles will eventually work their way back w/in the bands........right now the upper BB is @ 0.206........that is the 1st support level.......the 2nd level is MA(7) @ 0.164.........that is the 1st target on a pullback........MA(10) @ 0.152 is the 2nd support level........as long as MCIG keeps forming candles above the Middle Bollinger Band/MA(20) @ 0.144 the uptrend should continue..........

the motto is, ride the momo until the momo runs out..........be sure to stay one step ahead of the herd.......hint: the intraday charts will signal the reversal 1st...........$$$