The 10-24 entry pattern on the Nasdaq chart

As of Friday afternoon, 10-24, the Nasdaq Count was 8/-125(-6.5%), that is, the Nasdaq Average had declined 125 points in 8 trading days. At this point, traders had been out of the market since they sold out partway, 5 or 6 days, into the last mini-rally, waiting for the next entry point.

It came near day's end Friday, as the market turned up two hours form close into a 25-point slam. Yes, it could have been 10-20 points more, and it didn't have to be Friday with a chance that sentiment cools off over the weekend. But the cup pattern and slam were there, and it was a mandatory entry point. It could be a minor or major bottom, in which case N.B. traders will make and tuck away gains, or it could be just a blip then continuing decline, in which case they will sell out at buy-price, or a bit lower, stops set right now, by the rules. But they will never hold stocks through any real decline.

This style of trading, at the very highest level of what can really be done, is described and discussed at the noncommercial New Breed site -

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It is discussed further at the Yahoo "davetrends group site". You are invited to read, then participate if you like. After sitting back and reading many of the installments, there is no way you will not understand more of how the market really moves. And that's all we have to know, because essentially all worthwhile stocks move with it; and we use only the best 3-beta growth stocks as trading vehicles. Stop by. You will not be disappointed.

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