Investing Tools for Investors Looking to Excel
10/21/02  

Double Tops aka 1-2-3's- This pattern is worth digging for. First, we have a failed retest of an old high, followed by a uptrend line break, followed by a break below the neckline or the bottom defined by process of creating the double top. 

2 Month Breakdown from Base- This is a patterns where you have a sideways pattern for 10 to 20 days and a break below this trading range. You want to see a wide trading range on the breakdown and  a close at the bottom of the wide range. A break below a sideways pattern with a close at the top of the range which penetrates back into the trading range can be a buy signal. 

 Retracements back to downtrending 50 day moving average and failure- Here's the chart. Downtrending stocks will repeat this pattern frequently on the way down to whatever base they will ultimately establish. 

Overbought Stocks Breaking Below the 50 Day Average- This is normally a good pattern where the stock will normally retreat back to the next major moving average which would be the 150 day moving average. Be very careful not to short a stock into immediate support or long term uptrends. They can abort a decline and ruin your position. This one looks like it does not get to support until the upper 40's. This is a pretty good double top, as well. 

1-2-3-4's This is a pattern that is a counter trend reversal that fails. If you are looking to buy a stock but it has plunged (but you think it has more downside potential), you will want to look for a pullback that does that does not violate a downtrend or downward sloping 50 day moving average. You would enter the short after the 4th day, looking for an open price 1/8 below the prior day close. 

The 4th day is an inside day that trades inside the high and low of the prior day. I like to see it close at the bottom of the inside day range. 

Disclaimer

The information presented in this site is for your informational, educational and entertainment purposes. Investing involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. Nothing contained herein should be construed as a warranty of investment results. All risks, losses, and costs associated with investing, including total loss of principal, are your responsibility. Any advice or information contained in this site which you act on should be screened through your personal financial representative or broker. It is possible that any member of our staff will have a position in the stocks discussed within this site.

All information is the property of UOutPerform.com, OffTheGraph.com, and ChartWinners.com and should not be reproduced, copied, redistributed, transferred, or sold without the written consent of UOutPerform.com. All rights reserved.