Thread: Money Investing megathread extravaganza
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Old 06-20-2021, 01:36 PM   #10224
Hog's Gone Fishin Hog's Gone Fishin is offline
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Quote:
Originally Posted by lewdog View Post
Here's a pattern than can sometimes be a good entry, as long as the risk looks low as far as total loss. I falling wedge pattern back to a previous breakout pivot. If the stock gaps up and then sells off back to the breakout, on lowish volume, it could be a good entry. If this sold off on high volume, then it's NEVER a good entry.

Prior high of the May/June base was 58.20 before it gapped up. It's falling back slightly below this pivot point as marked by horizontal line on graph. Entry would be buy stop market order 58.20 with stop loss 56.60 (50 day MA) for 2.7% risk. I never risk more than 4% on this type of entry as there is absolutely still possible to see more selling off. The reward here is 58.20 entry with possibly retrace back to $65 for 11% gain. 4:1 risk/reward.

Wouldn't we want to see a small retracement at the end of that pattern?

Also , I would think to watch what it does in premarket action that should give a clue which way it will move??
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