7/18 Wednesday

Beautiful bounce today right after forming a Morning Star pattern there (13th, 16th. 17th).

Great looking bullish candle today.  Ok volume.

The interesting thing about this trade and what makes it good is that, this channel like pattern is forming on $PCLN (as you can see the lines I’ve drawn) and they are making HIGHER HIGHS AND HIGHER LOWS.

And I absolutely love trading these when it bounces from the HIGHER LOWS bottom.  Because for some reason it bounces well when the pattern is this way rather than its downtrend channel.  Trading upwards on a downtrend channel feels like you are going against the current. So you never know when you are going to be swept away by the current.

But trading uptrend channel when it bounces from the HIGHER LOWS, you are definitely going with the current.

I will update tomorrow and see where $PCLN takes us.

7/19 Thursday Morning

Looking great this morning!  Don’t you love when the trade goes exactly how you expected?

This thing has been very disciplined as of late and it was perfect to bounce off of that suport.

We gapped up this morning giving us more sentiment of this short-term bullishness.

We got about $15 more to go until it reaches the target but ROI looks great thus far!

Here 100SMA to watch out.

You can see in this chart (early June 2012) that it found initial bottom/support (at around $600) there after a huge bearish dive (May-June 2012).

It started chugging alone and reverse but when it met with 100 SMA, it gave $PCLN some problem there.

It actually formed (6/7/12) Bearish Dark Cloud Cover, and had lot of confluence below 100 SMA.  Ultimately it form a wedge or flag continuation pattern and continued bullish.

But definitely gave some problems to $PCLN  and that’s what COULD happen here today however I must say that the momentum is greater if you look at the candle pattern since the bounce two days ago.

We bounced with some great looking and strong bullish candles whereas back  in June 1st, with several spinning tops before it actually started moving upwards, didn’t have enough momentum to push through but subsequently it did push through.

And here i will tell you why if you wait until everything lines up and looking for a perfect trade, you are fantasizing.

Its like trying to find a perfect wife.  There isn’t ONE.

As you can see these oscillators (STOCH & MACD) are finally started to cross thus giving us bullish sentiment.

Stoch is at oversold territory crossing (giving us possible reversal sign of bearish trend)

Bollinger Bands looks great trading above that middle line, no problem we are going to get to that upper band in no time!

RSI is usually is first one to turn up pretty quickly so RSI is at near overbought territory but still got plenty room to go and it looks strong as far as giving us bullish momentum.

However if we have waited until we find better confirmation through indicators, we would’ve missed this good move from yesterday and today.

It’s not in the picture but I also have FAST STOCH that I have set up specifically to look at when I find these trades.

There are so many people trying to find that perfect trade with everything lining up, and I tell ya when that happens usually move is already done or its ready to retrace.

Your chart patterns and candle stick patterns and each individual stock’s attribute should give you a good feel of a bounce or reversal.

7/19 Thursday Noon: Closed with 77% ROI