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Steve's Trading Diary - March 2009


3/23 Bought AMAG immediately on the positive open because of the strength in the morning futures. It had a much more impressive move than we expected. It could eventually move up to fill the previous gap. 3/24 It consolidated right to the 200 day moving average where we expected it would. However, it needs to open higher and trade higher to continue to hold. It's in the overbought area and needs to show that the uptrend is still in progress. If it opens lower and starts trading down, come out of the position very quickly and see if it forms a Hammer type signal at the end of the day. Then we can always buy it back. 3/25 It held up above the 200 day moving average on Wednesday. Continue to hold. We don't want to see it close below Wednesday's low of $35.11. Coming down through that level and the 200 day moving average would tell us the Bears have taken control. 3/26 It continued to move up. It's getting a little bit toppy but will probably come up to at least fill the previous gap in the next day or so. 3/27 It's still moving up nicely. Continue to hold. 3/30 It held up reasonably well. We're now looking for a wave three breakout. 3/31 It traded sideways. At this point, if it trades back below Tuesday's low of $36, you should get out of the position. That would tell us the sellers are back in control. 4/3 It has broken out nicely to the upside. Continue to hold. 4/6 It formed a Shooting Star/Doji. Notice that it did this at the same level where it topped out before. If it opens lower on Tuesday, especially if it starts trading down below Monday's low of $39.54, take profits and wait to see what it does when it comes back down to the T-line. Maybe that will be a good place to buy it back. 4/7 It held up reasonably well. It had the potential to form a sell signal but it held up. Continue to watch for the uptrend. 4/8 It's still in a nice uptrend. Continue to hold. Still use the T-line as your stop. 4/9 It formed somewhat of a Shooting Star/Doji/Tweezer Top. If it opens lower on Monday, take profits. It needs to open higher and continue upward. Otherwise, it's showing too much weakness at this level and it would be time to take some profits. 4/13 It had an opportunity to trade lower but continued to move up instead. It's into new high territory. If it can close above the recent highs, it should have a good strong run. 4/14 It's getting a little bit soft at this level but it's still holding up. Use any trading below the T-line as your stop. It's starting to show a little bit of rollover action at this level. 4/15 It opened lower but came right back up so we will continue holding it. It needs to show strength to avert the rounding top situation. Continue to hold as long as it closes above the T-line. 4/16 It's still in an uptrend and may now be breaking out into another wave up. Continue to hold. Use a close below the T-line as your stop. 4/17 It's not doing anything to show the uptrend isn't continuing. Use a close below the T-line as your stop. 4/20 It opened right on the T-line and started to move up. Continue to hold until you see a close below the T-line. 4/21 It stayed above the T-line. Continue to hold even though the upward trajectory is starting to flatten out. Be ready to close it out on any selling. Use Tuesday's low as your stop. If it comes back down through that level on Wednesday, close out the position. 4/22 It continues to close above the T-line. Continue to hold. 4/23 It's still in an uptrend. Close it if it closes below the T-line. 4/24 It continues to consistently move higher. Continue to hold. 4/27 It's still in a nice steady uptrend. Continue to hold. 4/28 It's still in a nice steady uptrend. Continue to hold. 4/29 It moved up nicely but notice that it gapped up in the overbought area. It probably still has more upside potential but be very diligent about watching for a sell signal. 4/30 This is a perfect example of holding a stock until it closes below the T-line. This one has produced a very nice profit. 5/1 We would have taken off half the position in profits as it gapped up, which would have resulted in 60% profits. It pulled back significantly. Now we're looking for a Doji or a signal that would continue the uptrend or tell us the profit-taking is over. 5/4 It stopped its downtrend. If you still own it, continue to hold and now use Monday's open as your stop. If it comes down through that level, the Bears would be in control. Look for the Bulls to come back in. This one could go higher from here. 5/5 It's still holding up. We took half of our position off on Friday. If this starts showing more strength, consider buying back the half position. 5/6 It's still holding up. Continue to hold. If it trades above Wednesday's high of $52.50, you will want to start buying it again. That means it will move up farther. 5/7 You can buy back the other half position if it opens higher on Friday. With it closing more than halfway up Friday's large bearish candle, it told us the Bulls were back in control. 5/8 It can be bought on a positive open, which will take it up above the profit-taking area. It's still in a very strong uptrend. 5/11 If you sold half of your original position, you can buy it back on anything above $55. It's breaking out into new territory. 5/12 If it opens higher on Wednesday, it can be bought. If you sold a half position recently, it can be bought back on a positive open on Wednesday. 5/13 It gapped up Wednesday morning and a sell stop for half the position should have been placed at the close of the previous day. If it opens lower on Thursday, we would sell the rest of the position. 5/14 It consolidated but didn't close below the T-line. If it opens and trades higher on Friday, you can be a buyer. That would tell us it's still in an uptrend. 5/15 It pulled back but didn't close below the T-line. Notice that the last two candles are not very definitive. It needs to open higher and trade higher. If it opens lower and starts trading below the T-line at around the $52.80 level, close out the position. Use $52.80 as your stop. 5/18 It hasn't closed below the T-line. Continue to hold as long as it doesn't close below the T-line. 5/19 It was finally closed out on Tuesday with it closing below the T-line. It produced good profits on the way up.

3/30 ARB was not bought on Monday as it opened lower. However, it is still displaying a very strong signal set-up. Be ready to buy this if it comes up through Friday's high of $15.06. If it comes up through that level, it tells us the Bulls are back in this stock.

3/30 ALV was not bought. It opened lower, used the 50 day moving average as support, and came back up. Be ready to buy this on anything above $18.21, which would be up through the high of Monday.

3/27 Bought FSYS on the positive trading on Friday. It held up well and had a good day. Continue to hold. We're anticipating it will move up to fill the previous gap and reach the 50 day moving average. 3/30 It should have been stopped out as it came down through Friday's open. However, it formed a Hammer type signal. It can be bought back, especially if it comes up through Monday's high of $14.31.

3/27 Bought CSUN. It opened lower and traded lower all day until the last few minutes of the day when it went positive. If you bought this on the final minutes of trading, that's good. Be ready to buy this aggressively on a positive open on Monday. 3/30 It should have been closed out on the weaker open. However, it formed a Doji on Monday. Be ready to buy it back if it comes up through Monday's high of $3.09. If it comes up through that level, it tells us the profit-taking is over and the breakout is in progress.

3/26 Bought USB as it went positive on Thursday. It consolidated early in the day back to the T-line but closed at the top end of the trading range. It can still be bought if it opens positive on Friday. 3/27 It backed off on Friday but didn't close below the T-line. Use a close below the T-line as your stop. 3/30 It should have been closed out as it opened below the T-line after a Doji in the overbought area. It needed to have a positive trading day and start back up, which it didn't do. With the futures down as strong as they were and the stock gapping down, it should have been closed out on the open.

3/26 Bought MET as it went positive on Thursday. It's forming a nice little J-Hook type pattern. 3/27 It backed off a little bit but didn't do anything to change the upward trajectory. However, it did form a little Shooting Star type signal. If it opens lower on Monday, close out the position and wait for the next buy signal. 3/30 It should have been closed out as it gapped down after the Shooting Star type signal in the overbought area. Any stocks that were selling off hard in the overbought area on the open should have been closed out immediately.

3/25 Bought CBI on the positive trading on Wednesday. It consolidated like the market and came back up. This can be bought on a positive open on Thursday. Use $6.39 at the T-line as your stop. 3/26 It continues to move up. We're still anticipating a move up to the 50 day moving average. Use the T-line as your stop. 3/27 It consolidated but came back up to the top end of the trading range by the end of the day. Continue to hold until you see a definite sell signal. If it opens lower and starts trading down on Monday, you might want to take some profits. 3/30 It should have been closed out on the close after it couldn't move back up toward the T-line.

3/25 Bought LDK on Wednesday on the positive open. It's still in the Fry Pan Bottom pattern. Continue to hold. 3/26 It moved up nicely on Thursday. We would have taken off half the position in profits at the $8.20 level at the 50 day moving average. This produced a 45% return on half the position. Continue to hold the other half of the position. The first half of the position can always be bought back if it comes up through the 50 day moving average on Friday. 3/27 It consolidated but it didn't change the upward trajectory from the Fry Pan Bottom pattern. It's not quite in the oversold area so it will probably hit the 50 day moving average. Give it a couple of days to see if it consolidates and then breaks through the 50 day moving average. 3/30 It should have been closed out as it closed below the T-line. Now start watching for a Cup and Handle type set-up.

3/24 Bought FAS on Tuesday as it went up into positive territory after opening lower. We would have closed out half the position as it came back down through the area where we bought it on the open. It needs to open higher and start trading higher on Wednesday to continue to hold. 3/25 This could have been bought again on the positive open. It consolidated nicely and came right back up. There was nothing to change the upward trajectory of the trend. 3/26 It's trying to nudge up through the 50 day moving average. If it does, it can be bought aggressively. That would tell you the market is still going higher. 3/27 It backed off a little bit. Notice how it's being squeezed now between the 50 day moving average and the T-line. Close out the position on any trading below the T-line on Monday. That would probably tell us the market is backing off to test lower levels before coming back up again. 3/30 It should have been closed out with it opening below the T-line. It gapped down after a Doji day. When it gapped down, it told us it was time to get out of the position immediately.

3/24 Bought LNC as it went up through Monday's close. It closed lower so it needs to open higher and trade higher on Wednesday to continue to hold. If it opens and starts trading down, it will probably come back down to the T-line. If it shows any weakness, close out the position and wait for the next buy signal. 3/25 It moved up and down but didn't change the wave three prospect to the upside. 3/26 It traded higher while using the T-line as support. Continue to hold. We don't want to see it close below the T-line. 3/27 It had a nice move to the upside. Continue to hold. 3/30 It should have been closed out immediately with the gap down below the T-line and well below the previous day's close. It was setting up for a Kicker signal, which it did.

3/24 Bought BAC as it traded higher, but it closed lower. But it didn't really close low enough to make us want to get out of the position. Be ready to buy it aggressively on a positive open on Wednesday. If it opens lower, we wouldn't be afraid to close it and then start buying it as soon as it comes back down and touches the T-line. 3/25 It consolidated right back down to the T-line and came back up again. This can be bought aggressively on a positive open on Thursday. 3/26 It consolidated a little bit on Thursday. A lot of the banking stocks moved down a little bit. It's still an uptrend. Continue to hold as long as it doesn't close below the T-line. 3/27 It pulled back but the upward trajectory didn't change. It's staying up above the T-line. 3/30 It should have been closed out on the weak open on Monday. It formed a Rounded Top with a gap down. Now watch to see if it can support on the 50 day moving average.

3/19 Bought RMBS on the slightly positive open. It had a Doji day so if you didn't buy it and it trades higher on Friday, especially if it comes up through Thursday's high of $10.77, start buying it immediately. That could still be the breakout from the Fry Pan Bottom pattern. 3/20 It backed off and used the T-line as support. It needs to stay in the upward trajectory. If it closes below the T-line, close out the position. 3/23 It's still moving up nicely. Continue to hold. Use a close below the T-line as your stop. 3/24 It still hasn't closed below the T-line. It's coming back down very indecisively. This can be bought aggressively, especially if it trades up above Tuesday's high of $10.17. 3/25 It's still staying up above the T-line. It can be bought aggressively on a positive open on Thursday. 3/26 It's forming a nice J-Hook type pattern. Be ready to buy it aggressively on a positive open on Friday. 3/27 It's still above the T-line even though it consolidated a little bit on Friday. Continue to hold. Use a close below the T-line as your stop. 3/30 It should have been closed out as it gapped down below the T-line on Monday.

3/13 Bought MAS as it came up through Thursday's high. It consolidated a little bit but it was nothing to start a downward trend. It can be bought aggressively on a positive open, meaning if we see the futures up in the morning and the stock opening higher, we would buy it immediately. 3/16 It traded a little bit higher on Monday but it's getting a little bit toppy even though it's not close to the overbought condition. Expect some pullback action. At this point use a close below Monday's low of $5.11 as your stop. If it comes back down through that level on Tuesday, you'll probably want to come out of the position and wait for the next buy signal. There is a good possibility it could come back to the T-line and then start back up again. 3/17 It continued higher on Tuesday. It's staying above the T-line. Continue to hold. 3/18 It had a nice move up on Wednesday. It stayed up above the T-line and broke out through the 34 day moving average. Continue to use the 50 day moving average as your target. 3/19 It continues to move higher. It might be getting a little bit toppy. At this point we don't want to see it trade back below Thursday's low. If it comes back down through there, it's an indication that the Bears could be taking control. Use $6.11 as your stop. 3/20 It continued higher but formed a Doji and somewhat of a Tweezer Top at this level. If it opens lower on Monday, definitely take half the position off. If it trades back below Friday's low, take off the other half of the position. 3/23 It came up nicely through the 50 day moving average. Watch to see if it moves up a couple of more days and then pulls back down to the 50 day moving average. Watch for any sell signals over the next few days. 3/24 It consolidated a little bit. If it confirms with any trading below Tuesday's low of $6.85, close out the position. That would tell us the 50 day moving average was probably not going to act as resistance. The first support level would then be at the T-line. 3/25 It continued its move to the upside. It stayed up above the 50 day moving average in a consolidation stage. This can be bought aggressively on any positive trading from here. 3/26 It continued higher. Stay in the position as long as it stays above the T-line. 3/27 It came back fairly hard. If it opens lower on Monday, close out the position immediately and take your profits. 3/30 It should have been closed out as it closed below the T-line. It tried to come back up and closed at the 50 day moving average. It can still be bought back on signs of the J-Hook type pattern.

3/31 WYNN was not shorted. It opened positive and traded positive most of the day.

3/31 Bought MYGN on the positive trading on Tuesday. It moved up and came back down but stayed positive on the day. It definitely needs to open positive and start trading up on Wednesday to continue to hold. If it opens lower and starts trading down, close out the position immediately and anticipate that it will come back down and bobble on the T-line. 4/1 It should have been closed.

3/26 Bought CQB on the positive open. It's moving up nicely and forming a Cup and Handle pattern. 3/27 It acted well. It came up, hit the 20 day moving average, and backed off. It's still in an uptrend. Use a close below the T-line as your stop. If it opens weaker on Monday, aggressive traders will probably want to close the position and wait for the next buy signal. 3/30 It backed off after the Shooting Star day on Friday. It opened higher on Monday and then started trading off but it closed above the T-line. Give it one more day. If it doesn't open higher and trade higher, close out the position. 3/31 It didn't close below the T-line. Give it another day. It needs to curl back up on Wednesday or at least stay above the T-line. If it trades back below Tuesday's low of $6.31, close out the position. That would tell us the sellers are control with great vigor. 4/1 It should have been closed.

3/20 X was not bought. It opened and immediately went south. However, the Fry Pan Bottom pattern is still in progress so be ready to buy it on the next bullish signal.

3/18 Bought CIEN as it came up through Tuesday's close. Aggressive traders could have bought it at the T-line as it started moving back up. It's trying to form a J-Hook pattern. The next likely target is at the recent highs and possibly higher. 3/19 It consolidated a little bit on Thursday but it wasn't anything to reverse the trend. At this point we don't want to see it close back below Thursday's low. That would tell us the Bears are starting to take control. 3/20 It should have been closed out. It closed below Thursday's low and the T-line.

3/13 Bought LNC. It moved up nicely and then came back down to the lower end of the trading range, but it's still in an upward trajectory with the stochastics and is now in a gap area. It can be bought aggressively on a positive open on Monday. 3/16 It came back almost to the T-line area and showed weakness. We suspect that it will use the T-line as support. It needs to show some strength by the end of the day on Tuesday to continue to hold. 3/17 It consolidated but didn't close below the T-line. Be ready to buy this aggressively on a positive open on Wednesday. 3/18 It finished its consolidation and closed back up above the 34 day moving average. It can be bought on a positive open on Thursday. We're still looking for the 50 day moving average as being the next target. 3/19 It closed more than halfway down the last bullish candle. If it opens lower on Friday, close it out immediately. It closed right on the T-line. It needs to open positive and trade positive to stay in it. 3/20 It should have been closed out with the lower open and trading below the T-line most of the day.

3/12 Bought CBI on the positive trading on Thursday. It moved up nicely. It had a 7% move. We're still anticipating that it will move up to the 50 day moving average. Use the T-line as your stop. 3/13 It touched the 20 day moving average and then consolidated. Look for it to consolidate but it's nothing to change the uptrend just yet. 3/16 It continued to show strength coming up through the 20 day moving average. Continue to hold and use the T-line as your stop. 3/17 It consolidated back to the T-line and came right back up again. Be ready to buy this aggressively on a positive open on Wednesday. 3/18 It consolidated back to the T-line and came back up. It needs to open positive and trade positive on Thursday to get it moving back up. We don't want to see it trade at all below the T-line on Thursday. That would be three days without any positive movement and you would probably want to be out of the position. 3/19 It's getting a little bit toppy but hasn't shown a true sell signal yet.  Use a close below the T-line as your stop. 3/20 It should have been closed out on Friday with it trading lower after the bearish day on Thursday. The fact that it closed below the T-line would have definitely had us out of the position.

3/12 Bought ERII on the positive open on Thursday. It has formed a gap up/Scoop type pattern set-up. If it breaks through the 50 day moving average, it could move up into the $8.50 to $9.00 area. 3/13 It's still moving up nicely. The gaps tell us there is a lot of enthusiasm about getting into this stock. 3/16 Even though it pulled back a little bit, it didn't do anything to change the upward trajectory. If it can break through the 50 day moving average, we may have another three points to add to this one. 3/17 It consolidated and moved back up. We're still anticipating a push through the 50 day moving average. 3/18 It's resting. We're just waiting for it to break out through the 50 day moving average. Then it will have much more upside potential. 3/19 It consolidated for couple of days and then came back up through the 50 day moving average and closed up above it. Continue to hold. At this point start looking for a gap down. It needs to open higher and trade higher to continue to hold. You will probably want to start taking some profits on any weakness. 3/20 We would have taken profits and closed it out with it closing lower. It traded higher but then gave up the profits and traded lower below the 50 day moving average. This is a "booster" Bearish Engulfing signal with the tail to the upside. It's closed out but can always be bought back on new signs of strength.

3/11 Bought WRI. It can still be bought for long-term investors at anything above the T-line or $10.05. If it opens positive on Thursday, start buying it immediately. It would then have shown an up-day, a consolidation day, and another up-day. It's still yielding approximately 20% at this level. 3/12 It did exactly as we expected. It came down to the T-line and came back up again. It would have made a very nice day trade. We would still be holding this one long-term. It's paying a nice dividend. It should at least come up to the $15 area relatively quickly. 3/13 It backed off but provided a good point of entry when it came back to the T-line and started moving back up. There is still nothing in the chart that tells us it's not in a good strong uptrend. 3/16 It's not looking too good. It didn't form a true sell signal but did close below the T-line. It needs to open higher, trade higher, and stay above the T-line on Tuesday to continue to hold if you are a trader. Long-term investors can continue to hold this one. 3/17 It formed a Doji right near the T-line. If it opens positive on Wednesday, buy it aggressively both for a trade and for a long-term hold. 3/18 This can still be be bought, especially for long-term holders. It's still yielding close to 20% at this level. 3/19 It pulled back but didn't form a true sell signal. We're still looking to buy some more. Continue to accumulate at this level. 3/20 Traders should have closed it out on the weakness after Thursday's bearish signal. Long-term investors can be ready to buy this on the next buy signal.

3/10 Bought SVNT as it opened up above the T-line after the previous bottoming action with confirmation of a Doji and Bullish Harami. It traded up nicely on Tuesday. This one should at least come up to the 50 day moving average. Continue to hold. We don't want to see it close more than halfway down Tuesday's bullish candle at around $4.30. 3/11 It formed a severe Shooting Star signal. The only way to stay in this on Thursday is if it opens positive and starts trading positive. Day traders should start buying this immediately if it opens positive. It could move right back up to the top of the trading range. 3/12 It came right back up like we suspected into the upper shadow of the previous signal. This should easily get back up to the 50 day moving average. Then we will watch to see what type of signal forms at that level. 3/13 It consolidated a little bit on Friday but it was nothing yet to change the upward direction. Continue to hold. We don't want to see it close back below the T-line at around the $4.60 level. 3/16 It's still in a steady uptrend. It stayed above the 34 day moving average. We're still anticipating a test of the 50 day moving average. We don't want to see it close back below the T-line. 3/17 It continued up nicely on Tuesday. Continue to hold. We have big expectations that it will break through the 50 day moving average and move up higher to fill the previous gap. 3/18 We would have taken off half the position at the first resistance level. The half position can always be bought back if it starts moving up through the 50 day moving average on Thursday. If it opens lower and trades below Wednesday's low, close out the other half of the position. 3/19 Half of it was closed out on Wednesday as it touched the 50 day moving average. It still didn't show any strength on Thursday. Use Wednesday's low as your stop. It shouldn't trade anywhere below that level to continue to hold. If it opens positive and starts trading above the 50 day moving average, you can buy back the other half of the position. 3/20 It should have been closed out on the weak close.

3/9 Bought FWLT on the positive trading on Monday. It formed a derivative of a Kicker type signal. It can still be bought while anticipating that the current bottoming action could at least send it up into the 50 day moving average area. 3/10 It continued to move higher. You can probably now use the T-line as your stop. We're anticipating that it will fill the previous gap as the first price target. 3/11 It consolidated a little bit on Wednesday but it was nothing to change the upward trajectory. Continue to hold. We'd like to see it break through the 20 day moving average on Thursday and start heading back up toward the 50 day moving average. We don't want to see it close below the T-line. 3/12 It's still moving up nicely. Look for it to fill the previous gap fairly soon. 3/13 It moved up nicely. It gapped up above the previous gap. If it opens lower on Monday, we would start taking profits. We want to see it open higher, which would create an "Island Reversal" chart pattern. That would easily take it up through the 50 day moving average. 3/16 It had a Doji type day as it pulled back. This tells us there wasn't any convincing selling going on. It was just kind of a profit-taking day. Use a close below the T-line as your stop. 3/17 We would have taken some profits earlier in the day as it was trading down. But as it started coming back up, we bought back that portion that we had sold earlier. So now we would be holding a full position. It's still in a nice uptrend. Continue to hold. 3/18 We would be back into a full position by now. Look for the 50 day moving average as being the next target. There is a previous gap that it could fill. 3/19 It barely touched the 50 day moving average in the overbought area. At that point we would have taken off half the position. If it opens weaker on Friday, take off the other half. It needs to open higher and start trading higher. If it comes up through the 50 day moving average again, you can always buy back the other half of the position. 3/20 This was a good example of why we took half the position off just as it touched the first resistance level. Then we would have taken the other half off as it came back down through the low of the Doji signal on Friday. However, notice that it didn't close below the T-line. Watch to see if it chops around and forms a J-Hook pattern. At that point we can get back into this position.

3/23 AXYS was not shorted based on the fact that the indexes were trading so strong. Even though it traded a little lower, it closed at the top end of the trading range. This now may become a buying opportunity if it opens positive on Tuesday.

3/23 ARE was not shorted. It opened positive and traded positive. This could now become a buying opportunity on a positive open on Tuesday.

3/20 Shorted SOHU. It traded lower. Continue to stay short. We don't want to see it trade at all above Friday's high at the $40.36 level. If it comes up through there, it's showing too much strength and you should stop out the position. 3/23 It was closed out as it came up above the previous day's open. That told us there was too much strength to stay short in the position.

3/19 Bought GMXR on the positive trading on Thursday. Continue to hold as long as it stays above the T-line. 3/20 It formed a Bearish Engulfing signal at the lower end of the trading range right at the T-line. It needs to open higher and trade higher to continue to hold. If it shows any signs of weakness on Monday, close out the position immediately. This may now be a possible short position. 3/23 It opened positive. It can now be bought again if it opens positive on Tuesday. It's continuing its upward move. 3/24 It should have been closed out since it couldn't get back up through the T-line. It will probably try to come back down and form a Double Bottom at this level.

3/20 Bought MRX. Even with a weak market, if you see a Belt Hold signal with a gap up it tells you there is a lot more strength in the stock. Continue to hold. At this point we don't want to see it close below Friday's low of $11.85. 3/23 It continued up nicely. Continue to hold. We're anticipating the 200 day moving average as the next target. 3/24 It formed a Bearish Harami after a nice strong run. Be ready to close it out on a lower open. If it opens lower, it definitely needs to start moving positive immediately. If it continues lower, it will probably either test the 50 day moving average or the T-line. Just take profits and be ready to buy it back on  a J-Hook type pattern. 3/25 If you took profits on Wednesday, that's fine. It bounced off the 50 day moving average. Be ready to buy this back on the next signs of strength. It is now stopped out but be ready to buy it back.

3/17 Bought CETV as it came back up through our buy stop at $8.16. It consolidated early and then came up and closed above the 34 day moving average. It's still in a nice rounded bottom pattern with a good recent move. Anticipate a test of the 50 day moving average. Use a close below Tuesday's open of $8.13 as your stop, which would coincide with the 34 day moving average. 3/18 It had a nice little breakout on Wednesday at about the same level as where the Fry Pan Bottom pattern started. If it breaks up through the 50 day moving average, it could have a long positive move. 3/19 It's forming a little Fry Pan Bottom and could have resisted at the 50 day moving average but it gapped up through it. It looks like it could be using the 50 day moving average as support. We'd like to see it open positive and start breaking out to the upside. 3/20 It tried to back off on Friday but closed back up above the 50 day moving average. If you took profits on this, be ready to buy it aggressively on a positive open on Monday. 3/23 It's coming out of the Fry Pan Bottom breakout area. It did so very nicely on Monday. We were going to reiterate this as a buy if it opened up positive but it gapped up and shot straight up. Continue to hold because it closed more than halfway up Monday's candle. There are big profits in this one right now. 3/24 It pulled back a little bit on Tuesday but not enough to change the upward trajectory. Continue to hold, there are still very nice profits here. We don't want to see it trade below Tuesday's low of $13.64 on Wednesday. If it does, close out the position and take profits. 3/25 It should have been stopped out as it traded below Tuesday's low. However, it can be bought again if it moves back up over the next couple of days. We made very good profits in this one.

3/9 Bought WNR as it was coming up out of the J-Hook pattern. It closed lower but it didn't close more than halfway down Friday's large bullish candle. It needs to open higher and start trading higher to continue to hold. If it opens lower and starts trading lower, close it out. That would mean it will probably come down to test the T-line one more time. 3/10 It continued to move up in the J-Hook type pattern. Continue to hold. Use the T-line as your stop. 3/11 It continues to move up nicely. Look for it to break out through the recent high levels. It's in a huge J-Hook type pattern. 3/12 It was disappointing on Thursday. If it doesn't open up higher on Friday and start trading up, close out the position. If it opens lower, close it out immediately. 3/13 It was closed out on the weaker open below the T-line on Friday.

3/16 HWAY was not bought. When it opened up higher and immediately started selling off, it should not have been bought until there were new signs of strength, which there wasn't. However, if you did buy it, continue to hold as long as it stays above the T-line. It could easily open up higher and move right back up again on Tuesday. Keep an eye on it.

3/16 LOGI was not bought. It opened, bobbled around, and started selling off. If you bought it on the positive open, notice that it closed on the 2-day moving average. If it opens higher on Tuesday, it can be bought immediately. Monday's action was probably just profit-taking after it hit the 34 day moving average.

3/16 ENER was not bought. If you bought it, it needs to open higher and trade higher. It should move higher based on the previous gap up from the Hammer signal.  But if it opens lower on Tuesday, close out the position and wait for the next buy signal.

3/17 CQB was not bought. It consolidated on Tuesday. If you did buy it, hang on to it.  If you didn't buy it, be ready to buy if it trades anywhere above $6.15 on Wednesday. Notice how the integrity of the rounded bottom pattern has not been broken. Buy this immediately on any positive trading. We don't know which day will be the breakout day but a gap up would instigate that breakout.

3/17 STAR was not shorted. It never came down through the recent low and didn't come down below the T-line. This is still in a nice steady uptrend.

3/18 CRZO was not bought on Wednesday but can still be bought on Thursday if it opens positive, especially if it comes back up through Wednesday's high of $8.67. If it comes up through that level, that tells us it will probably move up above the T-line with the next logical target at the 50 day moving average.

3/10 Bought BEAT on the positive trading on Tuesday. It came up through the 200 day moving average so it has lots of upside potential. At this point use a close below Tuesday's open of $24.95 as your stop. 3/11 It's consolidating at the 200 day moving average. It needs to open higher or at least stay above the T-line. It may use the T-line as support. Be a buyer if it comes down, touches the T-line, and starts back up again. 3/12 It had a nice, big move on Thursday. It's still showing a nice, strong chart. We want to see if it can break out through the recent highs and move up another three or four points. 3/13 Continued huge profits were made in this stock on Friday. Continue to hold. Anticipate another two or three points to the upside before taking profits. 3/16 You could have taken some profits as it came back down through the halfway point of Friday's large bullish candle. It needs to open higher and trade higher on Tuesday to continue to hold. 3/17 We would have taken profits on half the position. It did come back down to the T-line. It's not showing any great strength. If it opens lower and starts trading down, close out the remaining position. If it opens higher and starts trading up, buy back the other half of the position. 3/18 The entire position was closed out on the weakness on Wednesday. But if it trades above $26.89 on Thursday, be ready to start buying it back again. A good strong J-Hook pattern could be possible.

3/19 AIR was not bought. It opened higher but immediately started trading off. Don't give up on this one. If it opens higher and starts trading back up, especially if it comes back up through Wednesday's close, be a buyer. Thursday's action was only profit-taking from the initial gap up.

3/13 Bought BECN. It opened higher, consolidated, and then took off like a jack rabbit. It had a nice big profit of over 10%. Continue to hold while anticipating that it will test the 200 day moving average. Be ready to take half the position off in profits on Monday. 3/16 It pulled back. We wanted to see if it would use the 50 day moving average as support. It didn't get up to the 200 day moving average so, as it came back, it would've been a good idea to take about half the position off and wait for the next buy signal. 3/17 It did not form an unexpected pattern. After a big price move, it consolidated, and it went right back up the next day. 3/18 It moved up above the 200 day moving average. It had a nice breakout. It's now back up into the previous congestion area. If it can break out through this level, there is a nice little Scoop pattern forming and it could move another three or four points higher. 3/19 It was stopped out on the basis that it came back down through the open of the previous candle when it was also up in the overbought area. This one has been stopped out. The chart also shows that it was resisting at the 200 day moving average.

3/12 Bought IP on the positive open on Thursday. The previous gap up shows a lot of strength. It should move back up into the $8.50 area or fill the previous gap at the $9.00 area. It could double your money. Continue to hold. 3/13 This is as conservative an investment we've considered in a long time. It's still moving up nicely. We expect that the 50 day moving average will be the next most likely major target. 3/16 It had a nice strong day. This is one where you might have used the 34 day moving average as the first place to take some profits. Now it has pulled back. If it opens lower on Tuesday, take some profits with the anticipation that it will test the T-line. To keep holding it, it needs to open higher or relatively flat and start trading back up again. 3/17 It had another big day. It did not confirm the previous potential sell signal. It opened higher and reached a new recent high. Continue to hold. At this point use a close below the 34 day moving average at $6.83 as your stop. 3/18 It has moved up to a possible resistance level. If it stalls there, take off half the position and watch to see what it does. There is still a previous gap that it could be heading for. 3/19 This chart is a perfect example of where to buy and where to sell. It gapped up on Thursday in the overbought condition right on the 50 day moving average. That would have been a good place to take off half the position. The fact that it closed more than halfway down the previous candle and formed a Dark Cloud signal at the resistance level was an indication to take off the other half of the position. Look for it to pull back. It can always be bought back if it supports on the T-line.

3/11 Bought PALM as it came back up through Tuesday's close. It used the 50 day moving average as support on the open. This is still a very strong signal coming up off the previous Inverted Hammer. Continue to hold. We expect it to eventually test the recent highs. 3/12 It's still working exactly like it should. It had a nice move up. We're still anticipating a test of the $9.50 area. 3/13 It's working very nicely. It did a lot of consolidation on Friday but closed near where it opened. After the Scoop type pattern we think that it will test the recent highs and possibly go higher. 3/16 It provided an opportunity to take some profits upon opening lower after a Doji. Just watch to see what it does at the T-line. It might be forming a little J-Hook pattern. 3/17 It used the T-line as support and came right back up again. Continue to hold. Use a close below the T-line as your stop. 3/18 It continues to hold up well. If it opens positive on Thursday, you can start buying it immediately. It would start its next leg up and form a J-Hook pattern. 3/19 It was closed out on Thursday as it closed just below the T-line after forming an Evening Star signal.

3/6 WTW was not bought. This was one of those classic situations where it the stock opened higher and immediately started selling off. Since there was no bullish confirmation after the open, this would not have been executed.

3/6 Shorted USB as it came down through the previous day's close after opening higher. However, it had a Doji type day. Just watch to make sure it is not in the bottom trading channel. If it opens higher on Monday, this position should be covered if you shorted it. 3/9 It should have been closed out on Monday as it came back up through the high of Friday's Doji, which would have been a good place to set your stop. Coming up through the high of a Doji tells us that the trend has been reversed.

3/3 Shorted PVR. Continue to stay short. 3/4, 3/5 Continue to stay short. Use 27.50 as your stop. 3/6 This can still be shorted on any weakness on Monday. It's staying below the T-line. At this point we don't want to see it close above Friday's high of $10.03. Use $10.03 as your stop for any trading. 3/9 It picked up a little bit of strength. If it trades positive on Tuesday, close out the position. It needs to open lower and trade lower on Tuesday to continue to stay short. 3/10 It should have been closed out as it opened positive on Tuesday.

3/2 Shorted MDT. Continue to stay short. 3/3, 3/4, 3/5 Continue to stay short. 3/6 It's still in a nice downtrend. At this point use Friday's high of $26.03 at your stop. It shouldn't trade up above that level. 3/9 It gapped down and formed a Doji in the oversold area on Monday. This would have been a good place to take off half your position. If it opens higher and trades anywhere above Monday's high of $24.75, close out the position. It needs to open lower and trade lower to continue to stay short. 3/10 It should have been closed out as it formed a Spinning Top and traded up above Monday's high. This one was stopped out with a very good profit.

3/11 TBSI was not bought. There was an announcement that it couldn't report it's earnings yet because of accounting and financing problems. This is the exact reason why you want to wait to see if the buy signal confirms the next day. It's better to be buying into strength than to try to catch it one day too early.


 

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