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Steve's Trading Diary - October 2010


10/27 Bought TQNT on positive trading on Wednesday. It moved up nicely. It reported earnings after hours but the results didn't seem significant so far. We're hoping to see a positive open on Thursday. 10/28 It moved up nicely. It reported earnings Wednesday night which didn't move it, but it moved up on Thursday. If it opens positive on Friday, you will still want to be a buyer. We don't want to see it trade at all back below Thursday's low of $10.09. If it does, that tells us it has run out of steam at this level. We anticipate that it will move higher from here and start wave three. 10/29 It consolidated nicely and then came right back up again. This can definitely be bought on a positive open on Monday. 11/1 It needs to open positive and stay positive to stay above the T-line. 11/2 It moved up nicely on Tuesday. It stayed above the T-line. This can be bought on positive trading on Wednesday. 11/3 It formed another Doji and tested the T-line. We're still looking for a pop to the upside. If it does, it can still be bought. 11/4 It gapped up off the T-line after the little Doji. That tells us there is probably lots more upside potential in this one. 11/5 It moved up slowly and nicely coming out of the Fry Pan Bottom/J-hook pattern and the gap up from the Doji. Continue to hold. 11/8 It used the T-line on Monday as support. It can still be bought on positive trading on Tuesday. 11/9 It moved up slowly on Tuesday. Continue to hold as long as it doesn't close below the T-line. 11/10 It continued up nicely on Wednesday. Continue to hold. 11/11 It formed a Bearish Harami at the lower end of the trading range. However, it's above the T-line. It has to open positive and trade positive. If it trades lower on Friday, close it out. The Bearish Harami is telling us something. 11/12 It should have been closed out as it closed below the T-line.

10/18 Bought MIPS as it traded positive on Monday. It can still be bought. If it breaks out through the recent high levels, it could move up another 4 to 5 points. 10/19 It moved up through the previous day's close and continued higher on Tuesday. This one did well, especially in Tuesday's market conditions. 10/20 We reiterated this as a buy if it breaks out through the recent high levels. 10/21 This could have been bought again on the positive trading on Thursday.  It came back down, tested the support level at the 20 day moving average, and came back up. It's a little bit wobbly at this level. It can still be bought on positive trading if it breaks through the recent high levels. Continue to hold. 10/22 It can still be bought on positive trading. Continue to hold. 10/25 It had a good day. Apparently it had good earnings and traded up toward the $12.00 to $12.10 range after hours. 10/26 It made for a very happy day. It broke out from the recent trading levels. A good earnings reports sent it up 30% on Tuesday. There were some extremely good profits made in this one. Continue to hold but at this point we don't want to see it trade back below $13 at the halfway point of Tuesday's large bullish candle. 10/27 After the big move of Tuesday, it continued to trade higher. At this point we don't want to see it trade back below Wednesday's low. It needs to open and continue to trade higher, hopefully in a 45 degree angle. 10/28 There is nothing yet to tell us the sellers are in control. Watch to see if it moves sideways until the T-line catches up. At this point we don't want to see it trade back below Thursday's low of $13.47. If it does, it will probably come back down to touch the T-line. 10/29 After a couple of days of consolidation, it moved up nicely again. If it opens positive on Monday, it can still be bought. Use Friday's low as your stop. 11/1 Even though it pulled back a little bit, it's still in a 45 degree upward trajectory. Continue to hold. At this point we don't want to see it trade back below Monday's low. That would tell us the Bears were probably starting to take control with profit-taking back to the T-line. 11/2 It's still in an upward trading channel. Continue to hold. 11/3 It continued to move up another point on Wednesday. Continue to hold until you see a sell signal. 11/4 It backed off but didn't break the upward trend channel. Continue to hold. 11/5 It's still trying to move up in the upward trend channel. Continue to hold.  We'd definitely like to see it open positive and trade positive to keep the trend channel secure. 11/8 It came back down to the T-line. It needs to open higher and trade higher to stay in it. 11/9 It held up above the T-line. It's still in the uptrending channel. Use the T-line as your stop. 11/10 It held up at the T-line nicely over the last couple of days. If it opens positive on Wednesday it can be bought aggressively. 11/11 It closed right on the T-line as a Doji. This is a very simple analysis. It has to open positive to stay in it. If it opens lower, close it out. 11/12 It should have been closed out as it closed below the T-line.

10/6 Bought HUSA on the positive trading on Wednesday. If it opens positive on Thursday, you will still want to be a buyer. It's still in the throes of a Fry Pan Bottom breakout. Use the 200 day moving average as your stop. 10/7 It's still coming out of the Fry Pan Bottom pattern. Continue to hold. We don't want to see it close below Thursday's low. That would tell us it will probably form a Cup and Handle type pattern. 10/8 It held up nicely. It can be bought on positive trading on Monday. 10/11 It had a nice day where it consolidated back to the T-line and came back up. It can be bought aggressively on a positive open. 10/12 It moved up nicely on Tuesday breaking out of the Fry Pan Bottom pattern. Continue to hold. 10/13 It continued higher. It's still doing a nice Fry Pan Bottom breakout. Continue to hold. 10/14 It's consolidating. Continue to hold. Use the T-line as your stop. 10/15 It's just moving sideways. Look for the next leg up from here. Use the T-line as your stop. 10/18 It's indecisive. It's either waiting for the T-line to catch up or it's backing off. We're hoping it's forming a J-hook pattern in preparation for the next up-move. 10/19 Continue to hold and use the T-line as your stop. 10/20 It's doing nothing positive or negative. Continue to hold. We're looking for this to trade positive and stay above the T-line while starting a new wave up out of the Fry Pan Bottom pattern. 10/21 It's staying just above the T-line. It can be bought on positive trading on Friday. 10/22 This can be bought on any positive trading on Monday. It pulled back nicely and formed a big Hammer signal after a series of Doji signals. If it opens positive, it can be bought aggressively. 10/25 It can be bought on positive trading on Tuesday. If it opens positive after the indecisive pullback and the Doji, expect another good three point run out of this one. 10/26 It finally broke out big. It's starting the next move up. It's still showing a good chart. 10/27 We have reiterated this as a buy if it opens positive on Thursday. 10/28 This would not have been bought again. It didn't move up above our $14.75 buy stop. The high was $14.73. However, it's still in a rounded trajectory. Watch to see if the T-line catches up. This can still be bought if it comes up through the $14.75 level on Friday. If you already own this, use the T-line as your stop. 10/29 It came back and consolidated right to the T-line. If it opens positive, you will want to be a buyer. 11/1 It can't get below the T-line. If it opens positive, you can still be a buyer. 11/2 It's staying above the T-line. Continue to hold. 11/3 It stayed above the T-line. Continue to hold. Don't let it close below the T-line. 11/4 It formed a little Bullish Engulfing signal and a left/right combination. If it opens positive, you will want to be a buyer. 11/5 It backed off a little bit. It needs to open positive and trade positive on Monday to stay in it. 11/8 It needs to open higher and trade higher on Tuesday to stay in it. If it opens lower, close out the position. That would have been too long of a time for it to trade flat and then eventually move below the T-line. 11/9 It held up nicely. Be ready to buy this on positive trading on Wednesday. 11/10 It moved up very nicely on Wednesday. Continue to hold. 11/11 It formed a Shooting Star a good distance away from the T-line. Use the halfway point of Wednesday's large bullish candle as your stop. It shouldn't come down below that level. 11/12 We would have closed it out because it formed an Evening Star signal, even though it closed just above the T-line. It can always be bought back if it opens positive on Monday and starts trading up afterwards.

10/29 Bought AEM on the positive trading on Friday. Continue to hold. It's forming a J-hook pattern at the top of a trend and is starting a new wave to the upside. 11/1 It consolidated fairly nicely after a couple of big strong days. There is nothing yet to tell us the uptrend isn't still in progress. 11/2 It didn't do anything decisive. It's probably moving sideways while it's waiting for the T-line to catch up. 11/3 It came down, tested the T-line, and came back up to form a Doji. It can still be bought on positive trading on Thursday. Use a close below the T-line as your stop. 11/4 It continues to move up nicely. Continue to hold. It had a strong move followed by a J-hook type pattern, which usually speeds up the move to the upside. 11/5 It didn't do anything to show a change of investor sentiment. Continue to hold and use the T-line as your stop. 11/8 It has been moving up nicely ever since the little Scoop type pattern formed in the uptrend. 11/9 It formed a Dark Cloud signal in the overbought area. It needs to open positive on Wednesday to stay in it. 11/10 Wednesday's trading showed that the selling had stopped. It should still trade positive, especially if it opens positive on Thursday. 11/11 It moved up well. It's using the T-line as support. Continue to hold. 11/12 It traded lower but came right back up and closed right at the T-line. It needs to have positive trading for us to stay in it on Monday. 11/15 It should have been closed out on Monday as it closed below the T-line. It may be forming another J-hook pattern but we don't know for sure.

10/25 Bought EDMC on positive trading. It came back to the lower end of the trading range by the end of the day. It needs to open positive and trade positive on Tuesday. It still setting up as a nice Cradle pattern and is trading above the T-line. 10/26 It can be bought on positive trading on Wednesday. Notice how it pulled back on Tuesday to the 50 day moving average, consolidated, and came back up. If it opens positive, it should have another strong day. 10/27 It moved up nicely on Wednesday. Continue to hold. It can still be bought, especially if it breaks out from its current trading level. Use the T-line as your stop. 10/28 It's still moving up nicely. Continue to hold. 10/29 It's trying to get up through the 20 day moving average. Continue to hold and use the T-line as your stop. 11/1 It formed a Cradle pattern that was followed by a steady uptrend. Continue to hold. It should fill the previous gap. If it does, it has the possibility of moving all the way up to the 200 day moving average. 11/2 It consolidated nicely but came right back up to the top end of the trading range. It formed a Doji. The analysis is very simple. If it opens positive on Wednesday, it can be bought aggressively. 11/3 It backed off quite a bit and closed right at the T-line. It needs to open positive and trade positive on Thursday to stay in it. 11/4 It moved in the right direction. It formed a Kicker type signal. With the Kicker signal behind it, it can be bought. We're anticipating that it will move up to the 200 day moving average. 11/5 It's still moving up slowly ever since it formed the Cradle pattern. Continue to hold. 11/8 It's still moving up steadily. Continue to hold. 11/9 It's still moving up nicely. Continue to hold. At this point we don't want to see it trade at all below Tuesday's low of $13.67. 11/10 It's still in a nice slow steady uptrend. Continue to hold. Use the T-line as your stop. We don't want to see it trade below the lows of the last couple of days. That would tell us the sellers are starting to take some profits. 11/11 It had a nice move up on Thursday. We still suspect that it could head for the 200 day moving average. 11/12 It formed a Bearish Harami. It needs to open higher and trade higher to stay in it. We don't want to see it open lower. If it does, we don't want to see it trade at all below the T-line. 11/15 It should be closed out on any weakness on Tuesday. It formed two Doji signals. It needs to open positive and trade positive to stay in it. 11/16 It should have been closed out as it opened weaker and started trading lower. However, it formed a Hammer type signal. It can be bought back if it opens positive or trades above Tuesday's high of $14.51. If you're still in it, it needs to open positive and trade positive. If it opens lower on Wednesday, close it out immediately.

10/8 Bought XIDE immediately on the positive trading coming out of the Fry Pan Bottom. It had a very nice trading day. Continue to hold. Look for it to test the 200 day moving average fairly quickly. 10/11 It rested a little bit but didn't do anything that would tell us the uptrend is over. At this point we may see some profit-taking. You might want to take some profits and wait to see if you should get back into the position in a couple of days. 10/12 It's still moving up nicely. It can be bought on a positive open on Wednesday. 10/13 It's getting a little bit toppy. It needs to open positive on Thursday to stay in it. 10/14 It's still holding up well. Continue to hold. 10/15 It's still moving sideways. It's staying between the T-line and the 200 day moving average. It will probably be squeezed between those levels for a few days. Continue to hold as long as it stays above the T-line. 10/18 It's getting very close to testing the 200 day moving average. Let's see what it does when it gets there. We might take some off as profits. 10/19 It formed a Bearish Harami but it's being squeezed between the T-line and the 200 day moving average. It needs to open positive to stay in it. If it trades below the T-line at all, close out the position. 10/20 It's running into a little bit of resistance at the 200 day moving average but it still being squeezed between the T-line in the 200 day moving average. Continue to hold and use the T-line as your stop. 10/21 It finally broke out through the 200 day moving average. Continue to hold and use the T-line as your stop. 10/22 It stayed well above the 200 day moving average. Continue to hold. At this point we don't want to see it trade toward the 200 day moving average or below Friday's low. 10/25 It's still moving up nicely. Continue to hold. 10/26 It formed a Bearish Harami on Tuesday but it closed at the top end of the trading range. Use Tuesday's low at $5.80 as your stop. It shouldn't come back down through there. It needs to open higher and trade higher to stay in it. 10/27 It continues to stay above the T-line. Continue to hold. 10/28 It's still in an uptrend and staying above the T-line. Use the T-line as your stop. 10/29 It's still in a nice steady uptrend. Continue to hold until you see a close below the T-line. 11/1 It's getting a little bit toppy at this level. At this point use any trading below the T-line as your stop. 11/2 It's still staying up above the T-line. Continue to hold. 11/3 Use a close below $6.03 as your stop. 11/4 It had a nice big move on Thursday. Continue to hold. 11/5 It's working out very nicely. Continue to hold. Just be prepared to start taking profits with the exuberant buying coming in. 11/8 It had a little Doji type day on Monday. It needs to open higher to stay in it. Use Monday's low as your stop. It should not come back down through that level. 11/9 It needs to open and trade positive. If it opens and trades lower, close out the position. It would then probably come back to test the T-line. 11/10 It came back up. Continue to hold. It might try to move sideways while it waits for the T-line to catch up. Continue to hold as long as it doesn't form a sell signal and close below the T-line. 11/11 It's still moving up nicely. Continue to hold. Use the T-line as your stop. 11/12 It got a little bit soft. It closed below the open of the previous day, which told us we should probably be out of it. If it opens lower on Monday, close it out immediately and see what it does when it reaches the T-line. 11/15 It formed a Doji/Shooting Star. If it opens lower on Tuesday, close out the position. 11/16 It should have been closed out on Tuesday. Even though it didn't close below the T-line, with the market trading soft it was obviously time to get out of it on the weak open after a Doji signal. You can always buy it back if it starts trading positive again.

10/29 Bought VHC. It came back but it didn't change the effect of the J-hook pattern with the potential breakout. If we see strong futures on Monday morning, we wouldn't be surprised to see this gap up to the previous open and continue upward. 11/1 It was relatively weak and closed right on the T-line. To maintain the upward trend channel it needs to open positive and stay positive on Tuesday. 11/2 It stayed above the T-line. Continue to hold. 11/3 It's getting lethargic. It needs a strong pop to the upside to move it out of wave two. 11/4 It obviously didn't do very much on Thursday during a 200 point up-move in the market. If it doesn't open positive on Friday and break out to the upside, we would probably take the money and move it to some place more effective. 11/5 It needs something more to happen. It's gotten to the point where it has run out of steam. This is one where you will probably want to come out of it and put your money to better use and then if it breaks to the upside, buy back in. 11/8 It should have been closed out on Monday on the close below the T-line.

10/28 Bought QSFT on positive trading on Thursday. It closed at about the same level where it opened. It reported earnings that were not bad, which was expected.  This can still be bought if it comes up through Thursday's high of $26.82. 10/29 It traded up for awhile but came back a little bit. Trading was so flat on Friday that all it told us was that nothing had changed. 11/1 It continued to move up moderately. Stay with this one. Use the T-line as your stop. 11/2 It's in a slow uptrend. Continue to hold. 11/3 It backed off a little bit on Wednesday but stayed above the T-line. It definitely needs to open positive and trade positive on Thursday. It's starting wave three. 11/4 It's in a slow steady uptrend. We're looking for another breakout to the upside. Continue to hold and use the T-line as your stop. 11/5 It's still in a slow steady uptrend. We're looking for the next breakout. Use the T-line as your stop. 11/8 It's still staying above the T-line. Continue to hold. 11/9 It should have been closed out as it closed below the T-line.

10/29 Bought JBL. Continue to hold. It can still be bought as it is starting wave three. 11/1 It opened positive and came back down to form a Dark Cloud signal, but it's not in the overbought area so give it another day to see if it will have a Doji type day or an indecisive day and then move back up the next day. 11/2 Tuesday's trading told us the selling wasn't all that aggressive. If it opens positive on Wednesday, it can be bought aggressively. 11/3 It consolidated and can be bought on positive trading. 11/4 It formed a little Kicker signal to the upside. Continue to hold and use the T-line as your stop. 11/5 It continued to move up nicely up off the T-line. Continue to hold and use the T-line as your stop. 11/8 It continued to move higher. Keep holding this as long as it stays above the T-line. 11/9 It formed a Bearish Engulfing signal. It needs to open positive and trade positive to stay in it. If it opens lower, close out the position. 11/10 It has been moving positive ever since the little Kicker signal formed. Continue to hold. 11/11 It should have been closed out after the Bearish Engulfing signal and the close below the T-line. If you still own it, it must open positive on Friday. If it opens lower, close it out.

10/27 Bought CVLT on the positive trading on Wednesday. It can still be bought on a positive open on Thursday. It looked like there was buying coming in on the close. If it opens positive, it can be bought, especially if it moves up through the $30 level. Use the T-line as your stop. 10/28 It lost some of its steam on Thursday. It should be closed out immediately if it opens lower. At that point it would come back and test the T-line and we don't know if it will stop there. Close it out on any weakness on Friday. 10/29 It's moving sideways waiting for the T-line to catch up. It's still coming out of the Fry Pan Bottom pattern. 11/1 It's getting a little bit weak at this level. We need to see more strength, which means it needs to open positive and trade positive for us to stay in it. 11/2 It consolidated nicely but came right back up again. This can be bought on positive trading on Wednesday. 11/3 It consolidated on Tuesday with a big Hammer signal. On Wednesday it formed a Doji. Look for positive trade. It could pop for another 2 to 3 points fairly quickly. 11/4 It broke out nicely as soon as it came back and hit the T-line. Continue to hold. It's acting well. 11/5 Nothing has changed the uptrend. 11/8 It's still moving up nicely coming out of the Rounded Bottom pattern. Continue to hold as long as it stays above the T-line. 11/9 It's holding up. Use the T-line as your stop. At this point we don't want to see it trade back below the low of Tuesday's Doji. 11/10 Continue to hold as long as it stays above the T-line. 11/11 It should have been closed out on Thursday after it gapped down with a Hanging Man signal below the T-line. It can always be bought back if it comes back up above the T-line.

10/11 Bought NBIX on the positive trading on Monday. It broke out nicely from the Fry Pan Bottom pattern. This could have a very strong run. Continue to hold and use the T-line as your stop. 10/12 Continue to hold. We want to see it stay above the T-line. It's doing a very nice Fry Pan Bottom breakout. 10/13 Look for a breakout to the upside. Use the T-line as your stop. 10/14 It's still moving up nicely. If it pops out through the current resistance level, it has some running room. 10/15 It moved up very nicely. Continue to hold. 10/18 It's still coming out of the Fry Pan Bottom pattern with good strength. Continue to hold. At this point use any trading below Monday's low as your stop. If it comes back down through there, it means some profit-taking is going on. 10/19 Half of the position should have been closed out on Tuesday because it formed a bearish type signal. Even though it didn't close below the T-line, it was showing weakness in the overbought condition. 10/20 It moved up very nicely. Continue to hold. 10/21 It had a Harami type day. Use the T-line as your stop. 10/22 It's still in a nice steady uptrend. Continue to hold. We don't want to see it close down through Friday's low of $8.21. It needs to stay above that level. 10/25 Continue to hold. It's still moving up slowly. 10/26 It's moving sideways waiting for the T-line to catch up. Continue to hold. We don't want to see it close below the T-line. 10/27 It needs to open positive and trade positive to stay in it. If you're not in it, a good place to put your buy stop would be at the recent high levels. If it comes up through that level, it should be breaking out. It formed a Fry Pan Bottom pattern and then had a nice positive move. The last five days have been J-hook consolidation days. Look for it to pop to the upside. 10/28 It closed right on the T-line. If it opens lower on Friday, close out the position. 10/29 It should have been closed out on Friday. Notice how it has been rolling over.

10/26 Bought IDCC on Tuesday. It's starting wave three. Continue to hold as long as it stays above the T-line. 10/27 It's still acting well. It used the T-line as support. After hours it was trading in the $32.60 area, up another dollar or so. Continue to hold until you see a sell signal. 10/28 It broke out on Thursday. Continue to hold. Use Thursday's low at the $32.13 level as your stop. 10/29 It's still moving up. Continue to hold until you see a sell signal. At this point set your stop at the $33 level where it opened on Friday. 11/1 After a gap up in the overbought area, it started selling off. It should have been closed out with it closing below Friday's open, creating a Bearish Engulfing signal. If you didn't close it out, it needs to open positive and trade positive to stay in it.

10/28 Shorted LHAZ0 as it traded below $67.45. Now we don't want to see it trade back up above Thursday's open at the $67.45 level. Use that as your stop. 10/29 This could have been shorted again. It continued to the downside. We wouldn't be surprised if it continues even farther down. Continue to stay short. 11/1 It still had a nice down day but after hours it popped up a little bit. If it shows strength going into the open on Tuesday, which is 10:05 Eastern time, close out the position. It would then be bouncing back up. 11/2 It should have been closed out as it traded up and formed a Doji in the upper end of the previous trading day. It now looks like it's going to move sideways or trade up to meet the T-line. This should have been closed out on the short side.

10/27 Bought ANAD. It broke out nicely through the recent high levels. This is the result of the previous Kicker signal after a little Scoop type pattern. It moved up very strong. Continue to hold until you see a sell signal. 10/28 It pulled back on Thursday but didn't do anything detrimental. Continue to hold as long as it stays above the T-line. 10/29 It's continuing to move up from the little Scoop type pattern. This can still be bought on a positive open on Monday. 11/1 It was hit hard on Monday, apparently from an earnings report. It needs to open higher to stay in it. If it opens and trades anywhere below Monday's low, close out the position immediately. 11/2 It should have been closed out. It's staying below the T-line.

10/13 Bought TPC. It's still moving up nicely. Continue to hold. It's coming out of a Fry Pan Bottom pattern. 10/14 Continue to hold. It's coming out of the Fry Pan Bottom pattern. 10/15 It came back, tested the T-line, and came right back up again. Continue to hold as long as it doesn't close below the T-line. 10/18 It continues to move up steadily as it's coming out of the Fry Pan Bottom pattern. Continue to hold. 10/19 It formed a Bearish Harami. At worst, half the position should have been closed. It formed a Bearish Harami/Doji in the overbought area so if it opens lower on Wednesday, close out the position completely. 10/20 It continues to move up. It used the T-line as support on Wednesday. Continue to hold. 10/21 It's still acting well. Continue to hold. 10/22 It's not doing anything to show a definite change of direction. It's probably waiting for the T-line to catch up a little bit. We might see a couple of days of sideways movement until that happens. 10/25 It's still slowly moving up. Continue to hold. Use the T-line as your stop. At this point use the halfway point of Thursday's bullish candle as your stop, which would probably coincide with the T-line on Tuesday. 10/26 It's getting a little bit "iffy" at this level. This should be closed out if it trades at all back below Tuesday's low. It needs to open and trade higher, or at least sideways, while it's waiting for the T-line to catch up. If it trades below Tuesday's low, it will probably come back to the T-line, which may not be a bad thing, but we don't want to hold onto it to see if it holds at the T-line or not. 10/27 It backed off a little on Wednesday. It needs to open higher and trade higher to stay in it. Any trading below the T-line would warrant closing out the position. 10/28 It needed to open higher and trade higher, which it did most of the day. Continue to hold and look to buy it on positive trading. 10/29 It's still holding up well. If it breaks out through the recent high levels, you will want to be a strong buyer. 11/1 It stayed up and used the T-line as support. Continue to hold as long as it stays above the T-line. We definitely want to see it open positive on Tuesday. 11/2 It gapped down on Tuesday and should have been closed. Anytime you have a Doji followed by a gap down, close out the position. It can be bought back if it climbs up above the T-line.

10/28 Bought QUIK as it traded positive but it took a big swing on Thursday. It traded as a Spinning Top so it needs to open positive and trade positive to stay in it. Use the T-line as your stop. 10/29 It pulled back but didn't do anything devastating. Continue to hold as long as it stays above the T-line. 11/1 It formed a Bullish Engulfing signal after a Doji, a left/right combination. It's staying above the T-line. Continue to hold and use the T-line as your stop. 11/2 It's still in a slow uptrend. This can be bought on any strong moves to the upside. 11/3 It should have been closed out as it opened lower. The gap down after the Doji told us to get out of the position immediately.

10/26 Shorted DGW. Remain short but we don't want to see it come up through Tuesday's open at all. Close it out if it comes up through that level. 10/27 Stay short but if it opens positive on Thursday, close it out immediately. 10/28 Remain short as long as it doesn't close above the T-line. 10/29 It started showing some strength. If you're short in the position, be ready to cover it on a positive open on Monday. 11/1 It opened positive but immediately started selling off. This is a case where, when you saw it open you should have given it a few minutes to see which way was going to trade. The fact that it opened right at the T-line and then immediately started selling off would have told us to stay short until we saw any buying, which we didn't. Continue to stay short. Use a close above the T-line as your stop. 11/2 Stay short as long as it doesn't close above the T-line. 11/3 If you're short, stay short. There is nothing yet to show any bullish sentiment. Now use Wednesday's high of $12.73 as your stop. It shouldn't come back up through that level. 11/4 It should have been closed out on Thursday with the gap up open above the T-line.

10/21 Shorted DLM. It can be shorted if it trades below the T-line on Friday. The gap down from the Bearish Harami is pretty substantial. 10/22 It should have been covered as it came up through the high of the previous day's Doji right at the T-line. That should have been enough evidence to show that it wasn't going down through the T-line. Now it can be bought on positive trading on Monday as a J-hook pattern.

10/25 VHC was not bought. It opened positive but if you watched it and saw that it immediately started trading off, you shouldn't have gotten into it until you saw some strength, which never happened. It came all the way down and tested the T-line. If you own it, continue to hold because it's still above the T-line. In order to buy it on Tuesday, it needs to open positive and trade positive. A good buy stop would be at Monday's open.

10/22 Bought LHAZ0 as it went positive on Friday. Continue to hold and use the T-line as your stop. 10/25 This should have been closed out as it traded below the previous day's open. This can be bought back if it comes up through the T-line.

10/22 Shorted XNPT. It should be closed out if it opens positive on Monday. 10/25 The short position should have been closed out as it opened positive on Monday, above the T-line. It needed to open lower and trade lower to stay in it.

10/21 Shorted ANF on Thursday. It can still be shorted if it opens lower on Friday, especially if it comes down through the 20 day moving average. 10/22 It should be closed if it opens positive on Monday, especially if it comes up through Friday's high. 10/25 It should have been closed out as it opened positive and traded above Friday's high. It can still be shorted if it opens and trades back down below Monday's low. That would tell us that the T-line was acting as resistance.

10/19 Bought GLEZ0 on Tuesday. When trading commodities you definitely want to buy the stock as it comes up through your buy point after previous consolidation. It's still trading positive after hours. There should be more upside potential in this one. 10/20 It continues to move up. Continue to stay long. 10/21 Continue to hold. It needs to trade higher though. If it comes back down through Thursday's low at around the $10.10 level, close out the position. 10/22 Continue to hold. It's now at the breakout area. Continue to hold until you see a sell signal. At this point you will want to put a sell stop at at the open of Friday. 10/25 It should have been stopped out as it moved down below the recent lows. It came all the way down to the T-line. Watch to see if it "hooks" back up.  It can always be bought on a positive trading day.

10/26 Bought FIRE on the positive trading on Tuesday coming out of the Fry Pan Bottom pattern. Earnings are going to be reported Wednesday afternoon. If it starts trading up on Wednesday, it can be bought. It needs to close strong going into the close. That would tell us the buyers are still very confident that the earnings are going to be good. 10/27 It should have been closed out on the close on Wednesday because it was going in the wrong direction because of the earnings report. It needed to be closed out because it was closing below the previous day's low and it was acting weak going into the evening of the earnings report. That's usually a good sign you want to be out of the position.

10/25 Bought RT on the positive trading. It had a Doji type day, which means if it opens positive on Tuesday and you're not already in it, it would be a good time to buy on a positive open. 10/26 It needed to open stronger. It's coming back to the T-line. If it opens lower on Wednesday, close it out. It needs to open higher and trade higher immediately to stay in it. 10/27 It should have been closed out. It failed to stay up above the T-line.

10/22 Bought COST as it traded positive on Friday. It can still be bought aggressively on a positive open. Use the T-line as your stop. 10/25 It traded positive but came back and closed at the lower end of the trading range. It needs to have positive trading. If it opens lower, it will probably come back down and test the T-line. It definitely needs to open positive and trade positive. 10/26 It got a little dicey on Tuesday and pulled back but closed right above the T-line. It needs to open positive and trade positive to stay in it. If it opens lower on Wednesday, close out the position. At that point it would be caught in the downtrending channel. 10/27 It should have been closed out as it closed below the T-line.

10/22 Bought SBH on the positive trading on Friday. It formed a Doji so if it opens positive on Monday, it can be bought aggressively. 10/25 It moved up nicely on Monday. Continue to hold. 10/26 It continued higher on Tuesday. Continue to hold. Hopefully it's starting wave three. Use the T-line as your stop. 10/27 It came back up above the T-line. Continue to hold. We definitely need to see it trade sideways or higher and stay above the T-line. 10/28 It should have been closed out on Thursday. It's right on the T-line. If you didn't close it out, it needs to open positive and trade positive to stay in it.

10/7 Bought SMOD on the positive trading. Even though it had an indecisive day, it's still forming a J-hook type pattern. Use the T-line as your stop. 10/8 It consolidated right back to the T-line and the 200 day moving average and moved back up. A nice J-Hook pattern is forming. 10/11 Continue to hold. It's acting well coming out of the J-hook pattern. 10/12 It pulled back right to the T-line. It needs to open higher and trade higher. It hasn't formed a sell signal yet. It was simply a down day in an uptrend. We don't want to see it trade at all back below the T-line on Wednesday. 10/13 It had a nice powerful move on Wednesday. Continue to hold until you see a sell signal. 10/14 It's still moving up nicely. Continue to hold. Just be careful since it's a little bit away from the T-line. It may move sideways for a couple of days while it's waiting for the T-line to catch up. 10/15 It moved up but had a Shooting Star/Doji type day. It's moving a little bit away from the T-line. At this point use Thursday's low as your stop. If it comes down through there, it will probably come back to test the T-line. 10/18 It's indecisive. If you took some profits on Monday, that's all right. It may be coming back to test the T-line. 10/19 It pulled back. It needs to open higher to stay in it on Wednesday. 10/20 It's staying up above the T-line. Continue to hold. 10/21 It can be bought on any positive trading on Friday. It's forming a J-hook pattern at the T-line. 10/22 This can be bought on a positive open on Monday. It's doing a nice J-hook pattern set-up. 10/25 We have reiterated this as a buy on any positive trading on Tuesday. It's forming a J-hook type pattern. 10/26 This would not have been bought again. If you bought it, hang on to it, but it needs to open positive. This can still be bought aggressively if it comes back up through Tuesday's high of $7.63. Continue to hold as long as it stays above the T-line. 10/27 It moved up nicely. It can still be bought on a positive open. It's doing a J-hook patterns set-up. 10/28 It closed below the T-line and should have been closed out. If you didn't close it out, it needs to open positive and trade positive to stay in it. If it opens lower, close out the position immediately.

10/15 AMCN was not bought. It opened and immediately started trading down. It did support on the T-line but we probably wouldn't pay attention to it unless it moves up into the $6.25 area.

10/8 Bought ISSI as it came up through the positive trading area on Friday. It consolidated nicely and is still in a J-Hook pattern. It can still be bought on a positive open on Monday. 10/11 Continue to hold. It's moving up in wave three. Use the T-line as your stop. 10/12 It pulled back a little bit but didn't form a true sell signal. It was simply a down day in an uptrend. Use the T-line as your stop. 10/13 It's staying above the T-line. If it opens positive on Thursday, it can be bought immediately. 10/14 It closed right on the T-line. It needs to open positive on Friday. 10/15 It should have been closed out. Even though it opened higher on Friday, it closed below the T-line and showed too much weakness.

10/7 Bought JASO on the positive open on Thursday because it was setting up to form a nice J-hook pattern, which it did. It came up and closed just above the recent high. It can still be bought on Friday. There is probably another three points in this stock. Use the halfway point of Thursday's bullish candle as your stop. It shouldn't close back below that level. 10/8 It backed off and it shouldn't have. It needs to open positive and trade positive on Monday to stay in it. If it opens lower, close out the position immediately. 10/11 Continue to hold. Be ready to buy it aggressively at anything above Monday's high. 10/12 Continue to hold and use the T-line as your stop. 10/13 Be prepared to buy this on positive trading if you're not already in it. 10/14 It had a nice day. It formed a Shooting Star type pattern. We don't want to see it come back down through Thursday's low of $9.60. At that point you would want to take some profits and see what it does when it reaches the T-line. 10/15 It should have been closed out as it closed below the T-line. It formed a Shooting Star and a Bearish Engulfing signal with the stochastics rolling over from the overbought area. It was time to get out of this position.

10/18 INFN was not bought on Monday but the trajectory of the J-hook pattern is still in progress. If it opens positive on Tuesday, you will definitely want to be a buyer. The J-hook pattern would then still be in progress.

10/18 DGW was not shorted on Monday. As a matter of fact, it formed somewhat of a Bullish Engulfing signal. Keep an eye on this one. It can be bought if it opens positive on Tuesday and continues upward. It appears as if a channel is setting up.

10/19 CRNT was not bought because it needed to open higher and trade higher. It gapped down instead.

10/19 Bought BBY. It traded up for a while on Tuesday but came back down and closed at the lower end of the trading range. This total us the Bears were back in control and we should be out of the position.

10/15 Bought ZRAN above the $8.00 level on Friday. It consolidated, came back and almost touched the T-line, and closed above the 50 day moving average. It can still be bought on positive trading, especially if it comes back up through the $8.05 level. That would tell us wave three is now in progress. 10/18 This can still be bought on positive trading on Tuesday. Continue to hold as long as it stays above the T-line. 10/19 It should have been closed out. It moved lower and then traded positive, but by the end of the day it closed back down through the open, which would've made a good stop loss point.

10/14 Bought ATW on the positive trading on Thursday. It definitely needs to trade positive on Friday. We don't want to see it trade below the lows of the past two days at the $31.90 level. With the gap up J-hook pattern, it should be moving positive. 10/15 Continue to hold as long as it doesn't close below the T-line. It's still in an obvious J-hook pattern. It's just consolidating at this level for a few days. 10/18 It continues to move up. It can still be bought on positive trading on Tuesday. 10/19 It should have been closed out on Tuesday. Even though it didn't close below the T-line, it should have been closed out on the close. It's doing somewhat of a Kicker signal to the downside. Worst case scenario is that you can be buying this back on a positive open on Wednesday.

10/13 Bought VHC on the positive trading on Wednesday. This is a good J-hook pattern set-up. 10/14 It consolidated a little bit on Thursday. It needs to open positive on Friday. If it opens lower, we don't want to see it trade back below Thursday's low. If it does, close out the position and make sure it supports on the T-line before buying it back. 10/15 It consolidated but didn't do anything definite. This can definitely be bought on positive open on Monday. 10/18 It's not doing anything significant but we'd like to see it open positive pretty soon. We don't want to see it close below the T-line. 10/19 It needed to stay above the T-line but it didn't. It should have been closed out.

10/12 Bought RDWR on the positive trading. It stayed at the level where it should be. It can still be bought on positive trading. It should be breaking out above the trend channel. We don't want to see it close back below the T-line. If it does, that means it's still stuck in the trend channel. 10/13 Be ready to buy this aggressively on any positive trading if it comes up through Wednesday's high of $34.75. 10/14 Continue to hold and be ready to buy it aggressively if it pops open to the outside. We don't want to see it close below the T-line. 10/15 This can be bought on Monday on positive trading. Use the T-line as your stop. 10/18 We're almost ready to close this one out. It must open positive and trade positive on Tuesday for us to stay in it. 10/19 It should have been closed out as it closed below the T-line.

10/11 Bought CNH on the positive open on Monday. It's confirming the J-hook pattern. Continue to hold. At this point use the halfway point of Friday's bullish candle as your stop, which would also coincide with the T-line. 10/12 Continue to hold. It did a little consolidation on Tuesday but it's still in the J-hook pattern. 10/13 It's still confirming the J-hook pattern. Continue to hold. Use the T-line as your stop. 10/14 It may have fizzled on Thursday. The only way to stay in it is if it opens positive and trades positive. If it trades below Thursday's low, close out the position. At that point it would probably come back to test the T-line and then you would wait to see what it does before buying it again. 10/15 It has to open positive and trade positive on Monday to stay in it. 10/18 It's holding above the T-line but it needs to open positive on Tuesday for us to stay in it. 10/19 It should have been closed out with it closing below the T-line.

10/1 Bought PVH on the positive trading on Friday. It came back and closed lower but didn't change the trajectory of the J-hook pattern. Use the T-line as your stop. If this opens higher, meaning above Friday's open, it can be bought immediately. 10/4 It keeps moving up but does it with "backwards motion" type trading. It opens higher but trades lower each day. Use the T-line as your stop. 10/5 It's still moving up nicely. Continue to hold. 10/6 It consolidated a little bit but the trajectory didn't change. Continue to hold. Use the T-line as your stop. As a matter of fact, we don't want to see it trade at all back below Wednesday's low. 10/7 It's still moving up nicely off the J-hook pattern. Continue to hold. 10/8 It's a little toppy but it's still in an uptrend. Use the T-line as your stop. 10/11 It consolidated but the direction didn't change. Continue to hold and use the T-line as your stop. 10/12 It moved up nicely. Continue to hold. It's still staying above the T-line. 10/13 Nothing has changed the trajectory of the uptrend. Continue to hold and use the T-line as your stop. 10/14 It's staying above the T-line. Continue to hold. 10/15 It's getting a little bit toppy. If it opens lower and trades down, close out the position. 10/18 After a Dark Cloud signal, it traded a little lower and closed right on the T-line. It must open positive on Tuesday for us to stay in it. 10/19 It should have been closed out immediately as it opened lower on Tuesday below the T-line.

10/20 SKX was not bought. It needed to open positive and trade positive. However, it opened and immediately traded negative. This should not be bought unless it comes back up through the recent highs and continues upward.

10/20 JBL was not shorted because it opened positive and came back up again.

10/20 BONT was not shorted because it opened and immediately started trading up. If it opens lower on Thursday, it can be shorted.

10/21 AMCN was not bought on Thursday. It opened and immediately started trading down. It needed to open and trade up above $6.50, which it never did.

10/14 Bought APL on the positive open. It closed lower. It needs to open higher and trade higher to stay in it. If it opens lower, close out the position and see what it does when it approaches the T-line. 10/15 It needs to open higher and trade higher immediately on Monday to stay in it. If it opens lower, get out of the position. 10/18 Continue to hold as long as it stays above the T-line. 10/19 We held on to it on Tuesday because it didn't close below the T-line. However, if it trades down below Tuesday's low of $19.02, close out the position immediately. 10/20 It's staying up above the T-line. Continue to hold and use the T-line as your stop. 10/21 It should have been closed out on Thursday with it closing below the T-line. It traded up for a while on Thursday but came back down. Now it has had plenty of time to break out, but hasn't.

10/13 Bought QUIK on the positive trading on Wednesday. Continue to hold. This should be the start of wave three. Use the T-line as your stop. 10/14 It moved up nicely on Thursday coming out of the J-hook pattern. Continue to hold. 10/15 It's still moving in an upward direction even though it pulled back a little bit after the open on Friday. Continue to hold as long as it doesn't close below the T-line level. 10/18 It might be moving sideways a little bit while it's waiting for the T-line to catch up. Continue to hold until you see a sell signal and a close below the T-line. 10/19 It sold off. If it opens lower on Wednesday, it should be closed immediately. At that point it would have formed an Evening Star type signal. 10/20 It needs to open positive and trade positive. It's supporting off the T-line. 10/21 It opened higher but came back down and closed below the T-line. We would have closed it out. If you didn't close it out on Thursday, be ready to close it out immediately on Friday on any lower trading.

10/8 WBSN was not bought, but it formed a Hammer type signal. It can be bought aggressively on a positive open on Monday.

10/8 GLEZ0 was not shorted on Friday. As a matter of fact, any short positions should have been covered as it came back up through the close of the previous Doji. There is news out that the corn crop wasn't as big as they expected. However, keep an eye on this. It's still in a downward trend channel so it could be coming back down over the next couple of days.

10/1 Shorted CCZ0. After it opened positive you could have put your sell stop at the previous day's close. It came down through that level so it could have been shorted. It can be shorted again on weakness on Monday. 10/4 It's still trading lower. Continue to stay short. It should come back down and test the recent lows. 10/5 Continue to stay short. It's moving in the right direction. 10/6 It needs to open lower and trade lower on Thursday. It formed an Inverted Hammer but not quite in the oversold area. It needs to open lower and trade lower. If it opens higher, close out the position and wait to see what it does next. 10/7 It couldn't close above the T-line. If it opens lower on Friday, it can still be shorted. That would tell us the T-line is acting as resistance. 10/8 It should have been stopped out as it came back up through Thursday's open. It's still an uptrend.

10/6 Bought XTXI on positive trading. It's still in the Rounded Bottom pattern. It stayed up above the T-line. It can still be bought on positive trading on Thursday.  Use the T-line as your stop. 10/7 Even though it pulled back, it's still in a Rounded Bottom pattern. Continue to hold. 10/8 This can be reiterated as a buy on any positive trading on Monday. 10/11 It formed a Belt Hold type signal. If you were stopped out, that was the right thing to do with the gap down. However, be prepared to buy it back. We may have lost 30 or 40 cents here, but it may have another two-point move to the upside.

10/12 APWR was not bought on Tuesday because it opened lower. However, it can still be bought at anything above $8.30 on Wednesday. The J-hook pattern is still in progress.

10/4 Bought BAS on the positive trading on Monday but it came back and traded flat on the day. Use Monday's low of $8.57 as your stop. It shouldn't trade back down through that level. It needs to trade positive for us to stay in the position. 10/5 It could have been bought again. It had a nice day. It can still be bought. 10/6 It broke out of the Fry Pan Bottom pattern very nicely. Continue to hold. 10/7 It has moved back up to its recent high on a nice Fry Pan Bottom breakout. The stochastics are in the overbought area. This is a very simple analysis. Put your stop at one tick below Thursday's low. If it comes back down through there, it will continue down as profit-taking. 10/8 It continued higher. Continue to hold. At this point use Friday's open of $9.89 as your stop. It shouldn't come back down through there. Just be aware that it's a good distance away from the T-line. 10/11 It formed a Shooting Star signal away from the T-line. It was a good time to take half your profits off. If it opens positive, you're all right with half a position. If it opens lower on Tuesday, you will definitely want to close out the other half position. 10/12 It should have been sold. It formed a Shooting Star and a bearish Belt Hold type signal. It's time to be out of it.

10/14 Bought CSIQ on the positive trading on Thursday. It closed back below the 50 day moving average and should have been stopped out as it closed below the $17 level. It can still be bought that it needs to open positive and trade positive on Friday.

10/1 INFN would not have been shorted on a day like Friday when the market was trading positive or flat most of the day. However, if it keeps holding at the T-line, watch to see if it starts wave three in a J-hook pattern.

10/4 CAAS was not bought because it didn't trade positive on Monday. If you bought it, it should have been closed out on the close below the 50 day moving average.

10/4 SQNM was not bought on Monday. The stock tried to trade up with the market trading down but not enough for us to enter the trade.

10/5 AMMD was not shorted. It opened and immediately started trading positive.

10/5 ROVI was not shorted. It opened positive. As a matter of fact, if it opens positive on Wednesday, you will want to be a buyer while using the T-line as your stop.

10/5 GLEZ0 was not shorted but if it comes back down through Tuesday's low of $97.20, it can be shorted. It needs to open lower and start trading down to show that there is still weakness.

10/7 TPC was not bought on Thursday. It opened and immediately started trading off.  However, it can still be bought if it comes back up through Wednesday's high of $21.28. If it comes back up through there, it tells you the Bulls are still in control coming out of the Fry Pan Bottom pattern.


 

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