The Brains Trust-2022, page-1654

lets look at this another way..........forget the chart for a minute, and look at the psychology
....
by the way, double tops can be difficult to see in real time.......

lot's of charts make double, triple tops and then carry on.

also NHC is coal, prone to political football as BCB has shown. position size accordingly, or take some off as the price increases.

OK, back to NHC (or WHC), and this idea of trying to pick tops. Getting a top is tough, and usually just a matter of luck if you manage it. (sure, on some fast moving spec stocks, you sit at a screen all day and try and pick the high-vol, blow off top in real time but NHC hasn't got to that overvalued stage (yet)........and besides, do you really want to sit at a screen all day.

So, I don't have a price target , why should I, unless I'm infected/infatuated with FOMT (fear of missing tops) or overly pendantic.

here's why.

Say you pick this up at the initial break of trend April last year at around $1.50. OR, even at !.60 a few weeks later or even $2.00 back in Dec last year......

Now go and look at your straight edged trend line that you have eloquently drawn. Your first long line has a stop loss at around $3.20. A WHOPPING 100% RETURN (on the $1.50 entry, or around 60% on the $2 entry....and more if you work it out Per Annum)

Now look at the second trend line you have drawn. The stop loss here is $4.50. A WHOPPING 200% on the $1.50 entry, or well over 100% on the $2. entry.

And now you could draw a third straight edge trend line and move you stop up for UNBELIEVABLE returns. + even more as NHC looks as though it is flagging at the moment(BULLISH)

So, beats me why anyone would bother trying to pick a top......these returns a good, and why risk missing out on even more.....

Just follow the trend....simple does it. A stop loss way back at $3.20 will still get you good returns, (although not preferred)

of course I have left out a few trading opportunities so your returns should even be greater.....but even there, a simple trend following strategy has worked quite well.


Keep it simple......