tothe
6 days ago
GDVM compound chart: November 27 was indicator line-up day as the Wash Sellers finally attracted Buyers attention when the PPS dropped below a penny. I was pounding the keyboard all day Nov 26-27 with $40 5,000K slaps.... did I stop GDVM from falling into the trips?
~~~ The Inside Day pattern is too interesting to ignore on a compound chart. This may attract Day Traders, Flippers and annoy the hell out of our resident Fungus.
https://thepatternsite.com/InsideDays.html
* A brief on chart Indicators
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chart & TA post thread
Compound Chart
#1. AROON- 8 You watch as the AROON DOWN crosses the 75 down and the AROON UP comes up from zero. Most important. (\0/)
#2. WILLIAMS%R- 9 You watch the line cross the 50.
#3. CMF- 15 You will usually only see growth when the CMF is in the negative.
#4. ADX/DMI-5 You watch as the D+ line either crosses the D-, or crosses above the 20.
#5. MACD histogram- 5,15,10 You watch the negative bars register -50% smaller then the bar before it, or -50% smaller then the largest in the grouping.
#6. Full Stoch- 5,3 You watch the fast line cross the slow line while the AROON DOWN(8) crosses the 87.50. Crossing the 20 would be best, when the Williams agrees.
#7. Bollinger Band 20,2 You watch for the Magic Box to occur when the negative close touches above the lower bolly and the next dayโs close to it is positive growth in a white candle.
#8. RSI 5 you watch as the indicator crosses above the 50 for a quick pop.
#9.MA(2) Watch the 2 day MA cross above the 5 day MA. Thatโs helpful.
#10. MA(2) To sell it just watch the 2 day MA kiss the bottom center of the red candle body.
https://stockcharts.com/h-sc/ui?s=GDVM&p=D&yr=0&mn=3&dy=0&id=p29397895492&listNum=23&a=1093863074
THE MAGIC BOX
(A) The Magic Box is a pure two-day pattern. Basically the "close" of a red candle printing on or near lower Bollinger Band with the next day printing an "open white candle."
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The reason that I named this setup the Magic Box was so that you could relate to it and remember it faster. Without relationship to something, it is nothing to us. It must be something memorable to you before you can set it into your subconscious mind and see it always.
(A1) On day one the Aroon Down is setting at 100 on the indicator and price is near the lower Bollinger Band. The Candlestick is dark-shadowed.
(A2) On day two, to form the Magic Box, the Aroon Down must drop to 87.50, and price to form a white candle, to complete the box. No other indicator is watched until this occurs for this setup, just the Bollinger Band and the Aroon Down.
If you see a Magic Box develop, that being, on the first day the Aroon Down going from 100.00 while the close is either on or just above the lower Bollinger Band and the second day the Aroon Down is now 87.50, you have a Magic Box.
(B) The buy opportunity occurs when the confirmation of two things happens: on day three or few days later the Aroon Down goes to 75.00 and the Williams%R comes above the -50%. That is the buy. The Williams must come through the -50%. It may take more than three days but you must wait for the confirmation of the William%R. I have seen again and again, the Aroon Down come down from 100.00 to zero without the Williams ever crossing the -50%, those are the ones you pass on. There will be no growth when this happens. At most there is consolidation or a small drop. During this process the Aroon Up can rise slowly but without the Williams you have nothing.
There are other Magic Boxes that develop in a stock's life cycle, too, and they, too, can give great growth. These are the supported median, the floating, and the rising Magic Boxes. The buy-in criteria, though, will remain the same for all of them. The Aroon Down comes to the 75.00 and the Williams crosses the -50%. June 7th, 8th, and 9th accomplish this in the 2007 HGR chart, though the William%R took until June 13th to confirm. You must wait.
Trading: It is highly recommended that you paper trade the system to familiarize yourself with it thoroughly. As with anything in life nothing is guaranteed, so, always use appropriate stop loss according to your risk tolerance.
Kenneth J. Goodrich
http://investorshub.advfn.com/SEASONALITY-STOCK-REPORTS-1616/
Example
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Sell trigger
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