Day traders' weekend lounge July 16 - 18, page-68

@buddi Nice observations. Here's my take;

SCU - Whilst what you pointed out is indeed a Bearish Engulfer on the daily chart.. the effectiveness of this setup is often more valid in the context of strong trending stocks. The Bearish Engulfing setup is especially less effective ST in new upward breakouts. New upward breakouts faced with a Bearish Engulfer can disprove this through consolidation at or above new support levels to absorb supply. From my experience, volume on the engulfing candle is often important for validity. Too early to tell but the low volume on the engulfing candle is relatively lower so just keep an eye on how it treats the backtest and it's fate will depend on that.

SCU 1 Hour - I decided to analyse the hourly for this one as the two relevant daily candles on the daily chart are not much to work off




SUD Daily- Didn't respect the continuation pattern and thus punished, but on relatively light volume. Not liking it much after that but it's still got a chance if 5.8 holds which is critical. So wait to see how it treats this new support zone but either way may need to consolidate and test for supply from scratch to build any meaningful momentum.



PRL Daily - The big volume upwards day struggled with the 50MA then setback by a Bearish Engulfer on a new upward which is common to force reconsolidation similar to the SCU example as noted above. Still in play and abit more advanced in development than the SCU chart but must hold 14.0


Loving the input @buddi. Keep on sharing your thoughts/progress