Black Days
Wednesday, November 28, 2007 at 03:09PM Recommendation: Financial Media is encouraging me to buy this move. Beware of the "Santa Rally"
Long: AMZN and MA as my Holiday fav's
Short: MW...that after hours quote better stick
Disclaimer: I hope Santa doesn't ruin Christmas...
Reader Comments (10)
I've always wanted to be the first person to leave a comment to one of my posts.
"Great tune Jeff! BTW- Are you bullish or bearish?"
Yeah Jeff, are you bullish or bearish?
Jeff,
How do you measure a flag pattern, from the top of the flag or from the spot of the breakout?
Bullish or bearish is irrelevant.
Just go with the market and MAKE MONEY.
Widest point of the pattern. Bottom of the flag to the top of the flag. That is of course, assuming you are dealing with a reasonable pattern.
Let me restate. Do you add the pole to the top of itself or the point of the breakout. For example pole is 10 poins from 30 to 40 stock then retraced with top of flag at 38. As I understand, when the stock closes above 38 the pattern is confirmed. Is the target now 48 or 50? Or am I wrong and the pattern is only confirmed when the stock closes above 40?
The pole is part of the pattern; Measure the widest point of the pattern. Bottom of the flag to the top of the flag.
Forward project that measurement from where the pattern confirms; which is when it breaks it channel, not it's ultimate high.
Thank you!
Clean cups!