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Steve's Trading Diary - December 2009


12/21 Bought INCY on the positive trading. Even though it pulled back a little bit, remember that it gapped up from a Fry Pan Bottom pattern. Be ready to buy this on any strength on Wednesday. 12/22 It had a nice breakout on Monday and the profit-taking ended on Tuesday. It can still be bought. 12/23 This one can still be bought. It probably has another 3 points in it based on what it did in its first wave up. 12/24 It was a little indecisive on Thursday. We wouldn't want to see it close back below Wednesday's open at around the $9.07 area. Use $9.07 as your stop. 12/28 It's still in an uptrend. Continue to hold. It still has some upward force off the previous gap up. 12/29 It traded indecisively. If it opens lower on Wednesday, you will probably want to take some profits and see if it holds at the T-line. Then put your buy stop at the $9.56 level. 12/30 It's slowly moving up. It's getting toppy. Use any trading below Tuesday's low at around the $9.15 level as your stop. 12/31 It came back and tested the T-line. It needs to open positive and trade positive on Monday to stay in it. 1/4 It's still in a nice uptrend. Continue to hold as long as it doesn't close below the T-line. 1/5 It moved up very nicely. Continue to hold. 1/6 It's moving up strong. Continue to hold. Watch for some profit-taking soon though. 1/7 It did some profit-taking. If it trades back below Thursday's low of $10.62, close out the position. 1/8 It's still holding up well. It's moving sideways until the T-line catches up. Continue to use the T-line or Thursday's low at around the $10.60 level as your stop. 1/11 It's still moving up nicely. Continue to hold and use the T-line as your stop. 1/12 It closed right on the T-line. The analysis is very simple. If it opens lower on Wednesday, close out the position. It needs to open positive. 1/13 If you didn't close it out, close it out immediately on Thursday if it opens lower. 1/14 It should have been closed out on Thursday as it closed below the T-line. Any time you see the Hammer type signal, it needs to open positive the next day. Otherwise the trend will continue.

12/30 Bought TLB on the positive trading on Wednesday as it came up through Tuesday's close and above the 50 day moving average. This can still be bought on positive trading on Thursday. 12/31 This can be bought if it opens positive on Monday. It had a strong move and then formed a a Doji, and now we're expecting another strong move to follow. 1/4 Watch for a little profit-taking but we still suspect that this is in an uptrend. It's coming out of a nice Rounded Bottom pattern and still has some upside potential left in the stochastics. It's a little bit away from the T-line but it's not anything major. Continue to hold and use the T-line as your stop. 1/5 It's still moving up nicely. Continue to hold. 1/6 It's still coming out of the Scoop pattern very nicely. It had a very strong day. It's in the overbought area. This is where you start looking to take profits. 1/7 It's continuing to move up nicely. Continue to hold. 1/8 It did a little bit of consolidation. It might be moving sideways until the T-line catches up. At this point we don't want to see it trade at all back below Thursday's low. That would tell us that, after Friday's indecisive day, the Bears are in control. Use the $10.25 level as your stop. 1/11 It formed a Bearish Belt Hold/Engulfing signal. If it opens lower on Tuesday, take profits immediately and watch what it does when it gets back to the T-line. 1/12 It should have been closed out. Even though it didn't close below the T-line, it should have been closed out on weakness following a sell signal. We can always buy it back if it supports on the T-line.

12/29 Bought ASTI on the positive trading, but it came back down and closed right on the 2-day moving average. It needs to open higher and trade higher on Wednesday to stay in it. It should still be in an uptrend. If it opens lower and starts trading lower, take profits and see if it will support on the T-line. If it does, you may want to re-buy it. 12/30 It consolidated back to the T-line and came back up. It can be bought on positive trading on Thursday. 12/31 It needs to open positive and trade positive on Monday. If it trades below the T-line, close out the position. 1/4 It can be bought on a positive open. That would be forming a derivative Kicker type signal. Continue to use the T-line as your stop. 1/5 It has held up above the T-line. It opened right on the T-line and came back up. It's now in a position where it can be bought on positive trading on Wednesday. Use the T-line as your stop. 1/6 It almost touched the 200 day moving average. We want to see it open higher and trade higher to tell us the profit-taking from Wednesday is over. 1/7 It's not doing anything but it's still in an uptrend. Just be careful about any profit-taking occurring here that would bring it back to the T-line. 1/8 It moved up nicely above the 200 day moving average. Continue to hold. We expect it to move up for a couple of more days and then maybe pull back to test the 200 day moving average. 1/11 It might be experiencing profit-taking here at the 200 day moving average. If it opens lower on Tuesday, take some profits. 1/12 It should have been closed out after it failed at the 200 day moving average and closed back below the T-line.

12/24 Bought ANV on the positive trading on Thursday. It can still be bought on a positive open on Monday. They traders should take a serious look at this. A positive open could possibly move it up a point and a half on the day. 12/28 It still moved up nicely. Continue to hold. It's coming out of a Rounded Bottom pattern. 12/29 It continued to move up nicely. Continue to hold as long as it doesn't close below the T-line. 12/30 It's still in an uptrend. Continue to hold. 12/31 It's still in a slow uptrend. There's nothing yet to tell us there is any reason to be out of it, but we wouldn't want to see it close back down below Wednesday's low. That would tell us it's getting toppy. We don't want to see it trade at all below the T-line. 1/4 It had a nice day. Continue to hold as long as it doesn't close below the T-line. 1/5 It's getting a little bit toppy but nothing has changed. At this point use Monday's low as your stop. If it comes back down through there, it will form somewhat of an Evening Star signal. 1/6 It's in a slow, steady uptrend. Use the T-line as your stop. 1/7 It's moving sideways. It's waiting for the T-line to catch up. Continue to hold as long as it doesn't close below the T-line. 1/8 On Thursday it used the T-line as support and came back up on Friday. It can be bought aggressively if it breaks out through the high of Friday at around the $16.42 level. If it comes up through there, you will probably want to still be a buyer. Even though it's in the overbought condition, it's coming up from a Rounded Bottom and a new wave up is in progress. 1/11 It's getting a little bit toppy. If it opens lower on Tuesday, take off at least half the position and see what it does if it comes back down to the T-line. 1/12 It should have been closed out on Tuesday as it closed below the T-line.

12/23 Bought GLBL on Wednesday as it traded up above the 50 day moving average. It was also reiterated as a buy for Thursday. Continue to buy this. It's in a good breakout situation. 12/24 This could have been bought again. It's continuing up nicely. Keep holding this one. It could possibly come back down to the 200 day moving average while profit-taking occurs and then form a J-Hook pattern. 12/28 It backed off on Monday but didn't do anything yet that would change the upward trajectory. It formed a Doji with the stochastics in the overbought area so you will probably want to use the 200 day moving average as your stop. If it comes down through $6.94, you will probably want to stop out. That would mean it's probably going to test 50 day moving average or the T-line. Then buy it back if it forms a J-Hook pattern. 12/29 It's moving sideways. It didn't do anything to tell us the sellers are in control. It will probably move sideways until the T-line catches up. Then watch to see if it will break out. Right now, we would put our buy stop at Monday's high. If it comes up through that level, that would mean the Bulls are back in control. 12/30 It's just moving sideways. It's waiting for the T-line to catch up so it can start the next leg up. 12/31 It's just trading flat. Use the T-line as your stop. 1/4 It moved up nicely. We're looking for wave three. It's heading for the $9.00 area. 1/5 It's showing consolidation but it's nothing yet to change the uptrend. 1/6 It consolidated but notice how it pulled back and then moved back up toward the higher end of the trading range. This can still be bought aggressively on a positive open on Thursday. 1/7 It came down, tested the T-line, and came back up. It can be bought aggressively on a positive open on Friday. 1/8 Even though it's pulling back, it's doing it in a very indecisive manner. If it opens positive on Monday, it can be bought aggressively. It should be in its next leg up. 1/11 It traded up away from the T-line. Still use the T-line as your stop. It can be bought aggressively if it comes up through the $8.03 level on Tuesday. 1/12 It should have been closed out with it closing below the T-line on Tuesday.

12/23 Bought HGSI on the positive trading. It formed a Doji but it shouldn't affect the uptrend. We wouldn't want to see it close back below the T-line. 12/24 It's still in wave three. It might be waiting for the T-line to catch up but we would definitely buy this on a positive open on Monday. 12/28 It's still in a nice uptrend. Continue to hold and use the T-line as your stop. 12/29 It continued to move up nicely. It backed off a little bit on Tuesday but it didn't change the trajectory. Continue to hold as long as it stays above the T-line. 12/30 It's staying positive. Continue to hold and use the T-line as your stop. 12/31 It's getting a little bit toppy but it's staying above the T-line. We don't want to see it trade at all below the T-line or the $30.40 level on Monday. If it comes down through there, close out the position. 1/4 We're looking for wave three to start. Continue to hold until you see a close below the T-line. 1/5 It's still in the next wave up. Continue to hold until you see a sell signal. 1/6 It's in a slow, steady uptrend. Continue to hold as long as it doesn't close below the T-line. 1/7 It needs to pick up some strength by opening positive and trading positive. If it opens lower and starts trading below the T-line, close out the position. 1/8 It needed to open positive and stay positive to keep holding it. However, it gapped down to the 20 day moving average and immediately started trading positive, which gave us one significant factor that a bar chart wouldn't show us. Once this opened, the Bulls were buying it. It still needs to close above the T-line if you still own it. It needs to open higher and trade higher. If it opens lower and trades lower, that shows the Bears are still in control and you would want to be out of it. It needs to open and trade back up above the T-line to stay in it. 1/11 It needs to open higher and trade higher. If it opens lower on Tuesday and starts trading down, close out the position. 1/12 It should have been closed out immediately as it opened lower on Tuesday. It needed to open higher and immediately trade up through the T-line.

12/10 Bought ARM on the gap up on Thursday. It broke out through the trend channel. It can still be bought on a positive open on Friday. 12/11 It continued to move up nicely. It's getting very close to a breakout level. Be ready to buy this again on any breakout. 12/14 It's still moving up nicely. Continue to hold. 12/15 It formed a Bearish Harami. It needs to open higher and trade higher to stay in it. If it trades back below Tuesday's low of $9.40, close out the position and wait for it to support on the T-line. 12/16 It moved up nicely and broke out through the recent high levels. Continue to hold. 12/17 it formed somewhat of a Scoop pattern. It's still in an uptrend. Continue to hold. 12/18 It's working very nicely coming out of the Fry Pan Bottom pattern. Continue to hold. 12/21 It's still moving up nicely. It has moved away from the T-line. If you see a sell signal, you will want to start taking some profits. If it confirms to the downside from there, close out the rest of the position. But until then, continue to hold until you see a sell signal. 12/22 It formed a Dark Cloud signal. If it opens lower on Wednesday, close out the position immediately. 12/23 It came back nicely on Wednesday. It's still in a strong uptrend. 12/24 It's continuing in a nice uptrend. Continue to hold. 12/28 It's getting a little bit toppy but there isn't any selling yet. Still use the T-line as your stop. 12/29 It could have been sold on Tuesday. If it opens weaker on Wednesday, close out the position but be ready to buy it back if you see it support on the T-line. 12/31 It needs to open higher on Monday to continue to hold. 1/4 It's still in a nice J-Hook pattern. Get ready to buy this on anything above $11.85 on Tuesday. 1/5 It came up nicely. It should be bought aggressively on a positive open on Wednesday. 1/6 It formed another Doji. It needs to have a positive open and a strong move to the upside to continue to hold. We don't want to see this come back down through the T-line again. 1/7 It needs to have a positive open on Friday to stay in it. If it opens lower, close out the position. 1/8 It closed above the T-line. It was a little bit "iffy" on Friday but closed back up above the T-line. It should be bought aggressively if it opens positive on Monday. 1/11 It moved up. If it trades positive you should be ready to buy it aggressively. Use the T-line as your stop. 1/12 It should have been closed out on Tuesday with it closing below the T-line.  It needed to trade upward immediately after the open and it didn't.

12/30 Bought TNB as it opened positive on Wednesday. It traded up nicely and stayed above the 20 day moving average as well as the 2-day moving average. 12/31 It should have been closed out on Thursday. This is not what it should be doing if it was in a Fry Pan Bottom type pattern.

12/24 Bought IO. It went up into new territory. It can still be bought on a positive open on Monday. 12/28 It backed off a little bit on Monday as expected after the Doji. Continue to hold as long as it stays above the T-line. 12/29 It closed right on the T-line. It needs to open higher and trade higher on Wednesday to stay in it. 12/30 It came right back to the T-line. It must open positive on Thursday to stay in it. 12/31 It should have been closed out with it closing below the T-line. Now watch to see if it's forming a bearish Scoop pattern.

12/22 Bought BLKB on the positive trading on Tuesday. It moved up nicely out of the Fry Pan Bottom pattern. It can still be bought on a positive open on Wednesday. It could possibly move up 6 to 8 points. 12/23 It's coming out of a Fry Pan Bottom pattern. Continue to hold. It's moving up nicely. 12/24 It showed some profit-taking on Thursday but there was nothing to show a change in investor sentiment. It's still coming out of the Fry Pan Bottom pattern. 12/28 It consolidated but stayed above the T-line and the 2-day moving average. Continue to hold as long as it trades positive. 12/29 Notice how it's coming down but isn't doing it very decisively. Still use the T-line as your stop. 12/30 It consolidated a little bit on Wednesday but it was nothing drastic. Continue to hold with the expectation that it will continue to move sideways until the T-line catches up to it. 12/31 It should have been closed out with it closing below the T-line.

12/21 Bought ACOR on the positive trading. It had a nice day but then closed back at the lower end of the trading range. It needs to open higher and trade higher to stay in it. If it opens lower and comes back down, get out of the position because it would be back into the previous trading range again. 12/22 It's still in a nice uptrend. It needs to show some strength after consolidating for a couple of days. Look for a strong day on Wednesday. Use the T-line as your stop. 12/23 It's moving up nicely. Continue to hold. At this point we don't want to see it close back below Wednesday's low. That would tell us that profit-taking was occurring and it could possibly move closer to the T-line. 12/24 It's still in a slow uptrend. Continue to hold. 12/28 It needs to be closed out on any weakness on Tuesday. It needs to open higher and trade higher to stay in it. 12/29 It's probably coming back to test the T-line. It could have been closed out on Tuesday on the weakness on the close. If you didn't close it out on Tuesday, close it out on any weakness on Wednesday but be ready to buy it right back if it shows support at the T-line. 12/30 It might be getting a little bit toppy at this level. Be ready to close it out on any weakness on Thursday. 12/31 It should have been closed out with it closing below the T-line.

12/15 Bought GMXR on Tuesday on the positive trading. Continue to hold and use the T-line as your stop. We definitely want to see it open positive on Wednesday and break through the 50 day moving average. 12/16 It traded a little bit higher. It's nudging its way up through the 50 day moving average. It can still be bought aggressively if it comes up through the 50 day moving average again. 12/17 It moved up nicely on Thursday. Continue to hold. At this point use the 50 day moving average as your stop. 12/18 It formed a Shooting Star signal in the overbought area. Use $13.60 as your stop. If it comes back down through that level, it shows that profit-taking is in progress. 12/21 It formed a Shooting Star signal on Friday. This is an example of waiting to see what it does the next day. If it opened lower, we would have taken profits. We needed to see it open higher and trade higher, which it did. 12/22 It consolidated but came back up nicely on Tuesday. Continue to hold. At this point we don't want to see it open lower and start trading down. If it does, it will come back to test the T-line. 12/23 It's still in a slow, steady uptrend. Continue to hold. Use the T-line as your stop. 12/24 Be ready to close this out on any weakness on Monday. Then watch to see if it holds up on the T-line. 12/28 It touched the T-line but closed at the midway point of Thursday's candle. If it opens positive, you will want to start buying. 12/29 It closed right on the T-line. It needs to open higher and trade higher to stay in it. Close it out immediately on a weaker open. 12/30 It needs to have a positive open. We don't want to see it close below the T-line. 12/31 It should have been closed out with it closing below the T-line.

12/14 Bought MEE on the positive open because of the Scoop pattern. Continue to hold.  It can still be bought on a positive open on Tuesday. 12/15 It continued to move higher. Continue to hold and use the T-line as your stop. 12/16 It's getting to a point where it should be at a breakout level. Watch this one carefully. We don't want to see it close back below the low of the previous day at around the T-line or the $38.65 level. Use that as your stop. 12/17 It pulled back but indecisively. It shouldn't trade below Thursday's low of $39, which would also correspond with the T-line. 12/18 It's still moving up nicely. Continue to hold. 12/21 It's still moving up nicely. If it breaks out from this area, you will want to be buying it aggressively. 12/22 It's still moving up nicely. Continue to hold. 12/23 It's still moving up nicely. Continue to hold. 12/24 It didn't move very much on Thursday. Continue to hold. 12/28 It formed a Doji and then a Bearish Engulfing signal. If it opens lower on Tuesday, close out the position immediately. 12/29 It's backing off. If it opens weaker on Wednesday, close out the position and see what it does at the T-line. 12/30 It needs to open positive to stay in it. 12/31 It closed below the T-line and should have been closed out.

12/7 Bought AKAM as it opened positive. Even though it pulled back it's still showing a nice breakout. Now we want to see at least an indecisive trading day or preferably evidence that the Bulls are stepping in. Continue to hold and use the T-line as your stop. 12/8 It came down, tested a support level at the 20 day moving average, and came back up. If it trades positive on Wednesday, you will want to be buying it. If it opens lower on Wednesday, close out the position and wait for the next buy signal. 12/9 It used the T-line as support again on Wednesday. Continue to hold. 12/10 It's getting a little bit soggy. If it trades below the T-line, close out the position. 12/11 It's not looking good. It needs to open higher and trade higher on Monday to stay in it. If it trades below the T-line, close it out immediately. 12/14 It stayed up above the T-line and formed a Doji. It definitely needs to open positive on Tuesday to stay in it. If it starts trading back below Monday's low of $24.80, close out the position. 12/15 It's getting toppy. It needs to open higher and trade higher. If it trades below the T-line on Wednesday, that would be five or six days of indecisive trading and we would close out the position. 12/16 It's forming a nice pattern working off the 50 day moving average. It can be bought on a positive open on Thursday. 12/17 Continue to hold as long as it doesn't close below the T-line. 12/18 It's still moving up nicely and staying above the T-line. Continue to hold. 12/21 It closed below the T-line on Monday. If it opens lower on Tuesday, close out the position. It needs to open higher and trade higher to stay in it and it needs to have a significant move up on Tuesday. Otherwise, it's trading too flat at this point. 12/22 It stayed just above the T-line again on the close. It needs to have a positive open or a strong move up to break it out of the flat trading range. 12/23 It's staying above the T-line. Get ready to buy this if it breaks out from this level. Use the T-line as your stop. 12/24 It's staying up above the T-line. Continue to hold but definitely use a close below the T-line as your stop. It's in a slow Fry Pan Bottom set-up so we need to see confirmation soon. 12/28 It's still in an uptrend. Continue to hold. 12/29 It formed a Bearish Engulfing signal after a Doji. If it opens weaker on Wednesday, close it out immediately. 12/31 It should have been closed out with it closing below the T-line.

12/31 Bought MNKD on the positive trading. It closed at about even on the day. It needs to have a positive open and positive trading on Monday. If it opens lower and trades below the T-line, you will probably want to come right back out of the position. 1/4 It can still be bought. Continue to hold as long as it stays above the T-line. 1/5 It got slammed again. It should have been closed out with it closing below the T-line. We'll just have to take our lumps and move onto the next one.

12/31 Bought BEBE. It's forming a nice J-Hook pattern. It came back a little bit after a positive open on Thursday. This can still be bought on any positive trading, especially above the $6.33 level. However, if it starts trading in a soft market on Monday, close out the position and wait for it to form another buy signal. 1/4 Continue to hold. It can still be bought on a positive open on Tuesday. More than likely it's heading for the 200 day moving average. 1/5 It continued to the upside. Continue to hold. 1/6 It's still moving up nicely. Continue to hold. we're anticipating the 200 day moving average as being the next target. 1/7 This is an example of a stock being in an uptrend and then gapping down below the previous day's open. When you see this happen, close it out immediately. Whatever was moving the price upward was not being confirmed with it gapping down from recent news. Whenever you see it gap down with a potential Kicker signal developing, close it immediately.

12/22 Bought CTSH. It moved up nicely. Currently, it's at a breakout level. Keep an eye on it. It can be bought on a positive open on Wednesday. 12/23 It's still moving up. It's now breaking out from the recent trading range. It can still be bought on positive trading. 12/24 It's still in an uptrend coming out of wave two. Continue to hold and use the T-line as your stop. 12/28 It's still in a slow uptrend. Continue to hold. 12/29 It closed near the T-line. It needs to open higher and trade higher to stay in it. If it trades below the T-line, watch out for a bearish Scoop pattern. 12/30 Nothing changed in this one. Continue to hold and use the T-line as your stop. 12/31 It closed right at the T-line. It needs to open positive and trade positive on Monday to stay in it. 1/4 It's still in a nice uptrend. Continue to hold. 1/5 The J-Hook pattern is still working nicely. 1/6 It's still in a slow, steady uptrend. Continue to hold and use the T-line as your stop. 1/7 It should have been closed out on Thursday with it closing below the T-line.

12/16 Bought SWSI on the positive trading on Wednesday even though it came back and closed lower. Watch this one carefully. It can be bought aggressively on a positive open on Thursday. Use the T-line as your stop. 12/17 It moved up but it's having a hard time staying there. At this point use Thursday's open of $14.58 as your stop. If it comes back down through that level, it tells us the Bears are now taking control. 12/18 It traded positive but came back and closed weak on the close. Continue to hold and use a close below the T-line as your stop. 12/21 It's still moving up nicely. Continue to hold and use the T-line as your stop. 12/22 It continued to move up but formed a Shooting Star/Doji. It needs to open higher and trade higher. At this point use the halfway point of Monday's bullish candle as your stop, which would probably coincide with the T-line coming up to that level. 12/23 It's still moving up steadily. Continue to hold. 12/24 It should have been closed out with it closing below the T-line. As a matter of fact, when you saw it gap down from the open below the previous day's trading, it should have been closed out immediately.

12/11 Bought HBI on the positive trading. Continue to hold as long as it stays above the T-line. 12/14 It's still moving up nicely. Continue to hold and use the T-line as your stop. 12/15 It formed a Doji/Harami at the lower end of Monday's trading range. If it opens lower on Wednesday, you will probably want to come back out of it and wait for it to support on the T-line. 12/16 It's still coming up nicely off the Bullish Engulfing signal and the 50 day moving average. This can still be bought on a positive open. 12/17 With the Shooting Star signal and the lower trading, you should have at least closed out half the position. To continue holding the other half of the position, it needs to open positive. 12/18 It's still staying up above the T-line. If it opens positive on Monday, you will want to start buying it. There may be a little Cup and Handle formation setting up. 12/21 It's trading somewhat sideways. It needs to open higher and trade higher on Tuesday to stay in it. If it starts trading back below the T-line, that would result in too many days of trading sideways and you would want to come out of it. 12/22 It needs to open higher and trade higher to stay in it. If it opens below the T-line on Wednesday, close out the position immediately. 12/23 It closed slightly below the T-line. If it opens lower on Thursday, close it out and wait to see what it does when it reaches the 50 day moving average. 12/24 This should have been closed out with it closing below the T-line. It's just not going anywhere.

12/29 SVM was not bought on Tuesday. It opened and immediately started trading down. It can still be bought if it comes back up through the $7.07 area.

12/22 Bought CLNE. It broke out from the recent high levels. It had a nice, strong day. Continue to hold until you see a sell signal. 12/23 It consolidated on Wednesday but it didn't change the upward direction. It closed slightly above the top of Tuesday's candle. It's still in an uptrend. Use the T-line as your stop. Even though the T-line is a good distance away, the stock is showing a strong breakout of a trend. Give it some leeway. 12/24 It appears that the profit-taking may be over. It can be bought if it opens positive on Monday. 12/28 It formed a Belt Hold signal. It needs to open positive and trade positive to stay in it. If it trades below Monday's low of $15.80, close out the position and wait for it to support on the T-line. 12/29 It should have been closed out after forming a weak candle following a bearish Belt Hold signal from the day before. It will probably come down and at least test the 50 day moving average.

12/16 Bought SPWRA on the positive trading on Wednesday. It didn't close very much higher on Wednesday but it's still moving in the right direction. Use the T-line as your stop. 12/17 If you bought this on the positive trading on Thursday, continue to hold. Use the T-line as your stop. 12/18 It used the T-line again as support. It should break out to the upside.  Continue to hold as long as it doesn't close below the T-line. 12/21 It didn't back off but didn't do anything decisively. Continue to hold as long as it stays above the T-line. 12/22 Be ready to close this one out if it doesn't open positive and trade higher. It's not picking up any steam and it sold off a little on Tuesday. Anticipate that if it gets weaker, it will test the T-line. You can always buy it back on the next buy signal. 12/23 It needs to open higher and trade higher on Thursday. Otherwise, it's time to get out of this position and move on to something else. 12/24 It needs to have a positive day on Monday. If it starts trading below the T-line, close it out immediately. 12/28 It closed sideways again. It's right on the T-line which makes the analysis very easy. If it opens lower, it should be closed out. It needs to open higher and trade higher to stay in it. 12/29 It should have been closed out because it closed below the T-line after about a week and a half of trading sideways.

12/18 HUN was not bought on Friday. It came back and tested the T-line. Be ready to buy this if it comes up through the $11.10 area. That would tell us that wave three is starting. Friday signal showed good consolidation action.

12/18 VRX was not shorted on Friday. It came right back up with positive trading. With the Bullish Engulfing signal and the possibility of breaking out to the upside you may now want to consider buying this.

12/18 AMAT was not shorted on Friday. It traded positive most of the day.

12/8 Bought TLB on Tuesday on the positive open. It bobbled around, tested the T-line, and came back up again. When a stock is up 25% and hits a major resistance level, take at least half the position off in profits. If it opens positive on Wednesday, you will want to be buying it immediately. It has tested the 50 day moving average and the stochastics are coming up so it will probably re-test the 50 day moving average in the next few days. 12/9 It could have been bought again on Wednesday. It's still moving in an upward direction. We're anticipating that it's going to hit the 50 day moving average and try to break through one more time. 12/10 It backed off a little bit but it was nothing to change the upward trajectory. Give it one more day. If it closes lower, it should test the T-line. 12/11 Continue to hold. We're still looking for it to move up through the 50 day moving average. 12/14 It's still holding up nicely. We're still looking for it to break out through the 50 day moving average. 12/15 It's still in a slow, steady uptrend. We need to see it break through the 50 day moving average in the next day or so. 12/16 It's moving slowly but still in an upward direction. It looks like it will be squeezed between the 50 day moving average on the T-line pretty soon. 12/17 It's getting toppy. It's not quite into the overbought area. If it trades below the T-line at all, close it out immediately. 12/18 It should have been closed out as it closed below the T-line.

12/9 Bought NLST on the positive trading on Wednesday. It's forming a perfect J-Hook pattern. Continue to buy this one. We wouldn't be afraid to be buying this all the way back up to $7.40. 12/10 It backed off on Thursday but it's still an a J-Hook pattern. We want this to open higher and trade higher on Friday. Use the T-line as your stop. 12/11 It needs to open higher and trade higher to stay in it on Monday. If it closes below the T-line, close out the position. 12/14 It stayed above the T-line. Continue to hold but it needs to open positive on Tuesday and trade positive. Any trading back below the T-line would show that there was too much bearish pressure and you would want to be out of it. 12/15 It stayed up above the T-line. It can be bought on positive trading on Wednesday. 12/16 It moved up. If it opens positive on Thursday, it can be bought immediately. 12/17 It's holding up well. Use the T-line as your stop. 12/18 It continued to move up slowly and indecisively but as long as it stays above the T-line, continue to hold. 12/21 It came back and closed below the T-line. We are going to give it one more day. The lower move was based on an announcement about lawsuits. It needs to open higher and trade higher to stay in it. If it opens lower on Tuesday, come out of the position. 12/22 It should have been closed out on Tuesday since it didn't come back up through the T-line.

12/9 Shorted MTN as it showed weakness. Continue to stay short. With the downside juice still left in the stochastics, this stock could possibly break through the 50 day moving average and go lower. 12/10 Continue to stay short. If it breaks through the 50 day moving average, it has a lot of room to go lower. 12/11 It should have been closed out as it closed at the high end of the trading range. It's right near the T-line so be prepared to re-short this one if it shows any signs of weakness where it can't get up through the T-line.

12/11 Shorted STEC on the weakness on Friday. It can be shorted again on any weakness, especially if it comes down through Friday's low at the $11.25 level. 12/14 It should have been closed out on Monday with it opening and trading positive, forming a Morning Star signal. Now it can be bought on a positive open above the T-line on Tuesday.

12/15 VRX was not bought on Tuesday. Still use any positive trading coming up through the T-line at around the $32.20 area as your buy stop.

12/10 Bought JDSU as it traded positive on Thursday. It should still be in an uptrend. 12/11 It formed an Evening Star signal and closed just above the T-line. It needs to open positive and trade positive to stay in it. If it opens weaker and starts trading down, close out the position. 12/14 It held up above the T-line on Monday. It can still be bought on a positive open on Tuesday. 12/15 It should have been closed out on Tuesday as it closed below the T-line.

12/17 AGO was not bought on Thursday. However, it can still be bought if it comes up to the $22.25 level. That would tell us the Bulls are continuing their participation.

12/17 MTG was not bought on Thursday. It needs to come up through the $5.40 level to finally buy into it.

12/17 FOE was not bought. It needs to come up through $7.65 before we would be buying it. If it comes up through that level on Friday, it can be bought.

12/14 Bought AFFX on the positive trading on Monday coming out of the Fry Pan Bottom pattern. Continue to hold. We want to see if it can break through the 200-day and 50-day moving averages and then come up to fill the previous gap. Use the T-line as your stop. 12/15 It consolidated on Tuesday. Continue to hold and use the T-line as your stop. It might be getting a little bit toppy so definitely use the T-line as your stop. 12/16 It consolidated a little bit and closed right on the 34 day moving average. Continue to hold as long as it doesn't close below the T-line. 12/17 It was closed out on Thursday as it closed below the T-line.

12/4 Bought SANM on the positive trading on Friday. It closed near its high for the day. It's breaking out nicely from the congestion area. Continue to hold and use the T-line as your stop. 12/7 It's moving up nicely. Continue to hold. We don't want to see it close back below Monday's open. 12/8 It held up reasonably well on Tuesday. Continue to hold and use the T-line as your stop. If it closes back below that level, it will form an Evening Star signal. 12/9 It's still staying above the T-line. Continue to hold. 12/10 It's staying above the T-line. Continue to hold. Use the T-line as your stop. 12/11 It's staying above the T-line and formed a little Bullish Engulfing signal. It can be bought on a positive open on Monday. 12/14 It bounced off the T-line on Friday and moved up. It can be bought on a positive open. 12/15 It's still moving up nicely. Continue to hold. 12/16 It's still in a slow uptrend. Continue to hold. Use the T-line as your stop. 12/17 It should have been closed as it closed below the T-line.

12/4 ANF was not shorted. It traded positive most of the day but closed down at the lower end of the trading range. It can still be shorted if it comes down through Friday's low of $35.82.

12/4 HNT was not shorted. It held up most of the day but closed near the lower end of the trading range. It formed another Shooting Star signal. It can still be shorted if it comes back down through the T-line or the $21.15 level. If it comes down through that level, it will probably go much lower.

12/8 SNIC was not bought. With the market trading off hard, it opened and started selling off. There wasn't really a reason to go after it because there wasn't any positive trading. However, this can still be bought if it comes up through Tuesday's high at the $10.30 level in the next day or so. That would tell us the J-Hook pattern is still in progress.

12/3 Bought VNDA on the positive trading on Thursday. The Fry Pan Bottom pattern is acting as a good springboard. Continue to hold and use the T-line as your stop. 12/4 It's still coming up out of the Fry Pan Bottom pattern. Continue to hold until you see a sell signal and a close below the T-line. 12/7 It's showing some profit-taking. It needs to open higher and trade higher to stay in it. If it opens lower, traders may want to come out of it and see what it does when it reaches the T-line. 12/8 It should have been closed out on Tuesday with it coming back down and closing below the T-line. It's forming an inverted Scoop pattern.

12/3 Bought FMX on the positive trading. It continued higher. It's forming a nice Fry Pan Bottom pattern. Use the T-line as your stop. 12/4 It continues to move up nicely. Continue to hold and use the T-line as your stop. 12/7 It formed a little Bearish Engulfing signal. If it opens lower and trades lower, you might want to come out of it and be ready to buy it right back if it bounces off the T-line. 12/8 It was stopped out as it closed below the T-line. It's forming an inverted Scoop pattern now.

12/9 NANO was not bought. It did some consolidation on Wednesday. It can still be bought if it comes back up through $13.25 on Thursday.

12/3 Bought FFBC on the positive trading but it closed back down into the previous day's trading range. However, it didn't do anything that changed the trajectory. If it trades below Wednesday's low at around the $13.55 area, close out the position. 12/4 Continue to hold. It's coming out of the Fry Pan Bottom pattern. Use a close below the T-line as your stop. 12/7 It's still coming out of the Fry Pan Bottom pattern. Continue to hold and use the T-line as your stop. 12/8 It's slowly fading back and not doing anything decisive. Use the T-line as your stop. 12/9 It should have been closed out on Wednesday as it closed below the T-line.

12/9 Shorted RCL as it got weaker on Wednesday. It hit the 20 day moving average and bounced back up. Continue to stay short. However, use Wednesday's high of $25.01 as your stop. It shouldn't be trading back up in that direction. To stay short you will probably want to see this open lower and start trading down. 12/10 It should have been closed out on Thursday as it opened positive. Even though it backed off a little bit it should have been closed out. However, if it starts trading lower again, you can re-short this one.

12/7 Bought MTG as it came up through the 50 day moving average on Monday. It closed back below that level but it wasn't anything serious. We'd definitely like to see it trade back up above the 50 day moving average on Tuesday. Continue to hold. It looks like the T-line or the 200 day moving average could be a support level. 12/8 It's having a hard time getting through the 50 day moving average. If it opens lower on Wednesday, you will probably want to come out of the position and set your buy stop above the 50 day moving average at the $5.25 level. If it breaks out it will probably move up to fill the previous gap. 12/9 It came back, tested the T-line, and bounced up a little bit. It needs to open positive and trade positive on Thursday. If it comes back down through the T-line, close out the position. We're anticipating that it will form a J-Hook pattern and come back up through the 50 day moving average. 12/10 It should have been closed out as it closed below the T-line on Thursday. Now you might want to consider this as a short position now that it failed at the 50 day moving average. It's forming somewhat of an Inverted Scoop pattern.

12/7 Bought TQNT on the positive trading Monday morning, but it pulled back. We want to see this open positive and move up through the 50 day moving average very quickly. Use the T-line as your stop. 12/8 It pulled back. It needs to open positive and trade positive. If it trades back below the T-line, you will want to come out of the position. We're hoping that it curls back up and tests the 50 day moving average one more time. 12/9 It stayed just above the T-line. It has the possibility of forming a J-Hook pattern. It needs to open higher and trade higher to stay in it. We don't want to see it open lower and trade down on Thursday. 12/10 It should have been closed out as it opened below the T-line. It needed to open higher and trade higher to stay in it.

12/2 Bought SOLF on the strength on Wednesday. It should be breaking out. Continue to hold and use the T-line as your stop. 12/3 It got soggy on Thursday. It formed a Bearish Engulfing signal in the overbought area. Give it another day but use any trading below $6.76 as your stop. If the Bulls are in control, it shouldn't trade back below that level. It needs to open higher and trade higher to stay in it. 12/4 It got a little bit toppy. Be wary. We would probably put a sell stop at the low of the day at $6.85. If it comes back down through there, it may be in a trend channel and will probably come back down through the T-line. 12/7 It's still moving up nicely off the J-Hook pattern. Continue to hold. 12/8 It formed a Bearish Harami at the lower end of Monday's candle. If it opens lower on Wednesday, close it out immediately. 12/9 It used the T-line as support and came back up again. Continue to hold. 12/10 It should have been closed out on Thursday with it closing below the T-line. The warning was Tuesday's Bearish Harami closing at the low end of Monday's bullish candle.

12/1 CECO was not bought. This is a case where you shouldn't have bought it unless you saw some strength in the stock after the open. It opened and immediately started selling off. It can still be bought if it comes back up through the $26.20 level.

12/2 FSYS was not bought on Wednesday. It didn't do very much but it's still set up as a good buy if it comes up through Wednesday's high of $51.38. That would tell us the J-Hook pattern is still in progress coming off of the Belt Hold/Hammer type signal.

12/2 SINA was not bought on Wednesday. It wasn't a day where there was any rampant buying in the markets. Use Wednesday's high of $47.09 as your buy stop. If it comes up through there, you will want to be a buyer.


 

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