Tuesday, July 12, 2005

Chart analysis of one from yesterday's watch list: FLOW


This chart illustrates a triple-cup base in FLOW from last year, and a possible triple-cup base forming again. I've drawn the most bullish scenario for the next month or two in FLOW.

I like to try to buy a small position in the bottom of the 3rd cup, and add to it when it breaks out over the upper-channel line. Obviously if my first buy in the 3rd cup undercuts a prior low in the base I'll dump my position. If it doesn't make a 3rd cup and instead breaks out, I'll buy a small position above the upper-channel line and add on the first pull-back if the volume pattern is bullish.

2 Comments:

At 7:23 PM, Blogger HulkHogan said...

Btw, Jon, I started my own personal blog about my own adventures in trading. It's pretty much pointless, but I wanted a place to maintain a journal of all my trades and thought it would be interesting to read for others who, like me, are small time traders just beginning their trading careers. I need to hurry up and get a disclaimer posted at the bottom of the site about not using my site as advice for trading.

http://smalltraders.blogspot.com

 
At 8:28 PM, Blogger jontait said...

Hey Matt, this is great dude. After a few months of writing about trading, you'll be glad you started your blog journal because you can look back with the benefit of hindsight and revisit what you were thinking at the time. One of the best things you can do is document your big losses as well as you can. So far this year I've had 2, one in KRB and another in RIMM. Both were shorts that gapped up about 25% on me, you can read about them here lol.

 

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