Replies to post #21144 on Element Global Inc (ELGL)

[georgie18]

Nothing at all...people have negative reactions when they see a post about a Bearish pattern because that is what has been instilled in us but there is nothing bad about a Bearish pattern if one understands the possibilities it brings...To me the most important part of trading is having an exit strategy because that defines what your realized gains will be...unrealized gains only reflect paper gains and paper gains can go away as fast as they come...

So the big question is when do I take money off the table...do I wait till all my gains are gone...do I wait until I see a dip ...Profit is paramount so I believe you always take profit incrementally on the way up and not on the way down and in this game of playing the averages the recognition of a Bearish pattern on a Bullish Chart is also paramount...It is easy to say I see 3 Green Candles so no way am I selling this is going up for days and it may but that is not what the averages say...Recognition of Bearish Candles on a Bearish Chart is obvious...Recognition of a Bullish Candle on a Bullish Chart is equally obvious...Recognition of Bearish Candle on a Bullish Chart is demanding...Recognition of a Bullish Candle on a Bearish Chart also demanding...It is important to know the obvious but paramount to recognize what is not so obvious...

Candles...Patterns...Charts do not fall into a category that is an exact science...so yes anything can happen and ELGL can run for days...weeks...months...theoretically...but for every action there is an equal and opposite reaction as the theory says...What reaction will EGLG have when the RSI is overbought...Williams is overbought...Full Stochs are overbought..and you have a move from .07 to 445...plus 600% and you have 3 candles that have gapped up leaving open gaps as the pps trades way outside the upper bollinger band...The averages tell me this is a sell and a retrace is coming...Question is do I play the averages and take a boatload of profit off the table or do I stay in and see if I can squeeze another 2 days out of a possible run up...No right and wrong here...Just what is practical for each trader as it suits their needs...

The answer to your question is yes it can still run for days but it is interesting how people look at stocks they own and find every reason why it is going up and given the same exact stock they look for every reason the stock will go down because they do not own it but are looking for a position...same stock different mindset...That my friend is why they say no emotions when you trade because they hinder your practicality...

I think I gave you more then you asked for but I also think it addressed your underlining concerns...BTW....I do not believe there is such a thing as selling too early...profit is profit and that is the sole reason most of us trade...Have a Great Day...