Triple bottoms. For SAS that is 4.7c. Watch that level closely. A break is very bad. A bounce is simply fantastic. Part of a recent email from Phillip J Anderson. Net worth $200Million +
Let’s bring up the chart, because it gives me a nice little lead in to what I really want to talk about today.Here’s the weekly…Source: Optuma
Yes, it’s really gone on a tear, like a lot of retail stocks lately.But what I want you to take note of are the lows.One, two, three times it tried to break below $10, but it failed to do so.So much is made of WD Gann’s esoteric knowledge. But he also left us with some very practical trading tips.Here’s one of them…Nearly a hundred years ago, WD Gann was writing you should be watching stocks making a triple bottom.He suggested the third move down trying to break a bottom was important. If it fails, a strong move in the other direction may be expected.Well that’s what we got in this instance anyway.You need to be watching bottoms, if you want to improve trading results.Sometimes stocks will make sharp or angular bottoms, sometimes they’re more rounded in shape.I prefer well rounded bottoms. It just gives me a bit more confidence that it’s going to hold that level.But at the end of the day, you take what the market gives you.Bottoms aside, here’s something else you need to watch.Double tops.Here’s the daily chart of Appian Corp [NASDAQ:APPN], which will help to explain.Source: Optuma
Buying there, you’re on a hiding to nothing. You see this pattern so often.For your own trading, it’s just something to watch.It’s not a time to be buying. Depending on your trading plan, a double top might be a time to sell.Having this knowledge just gives you some reference points to work with.But it’s when you can put a few things together that it becomes very tradeable knowledge.So for example, if good news brings in the double top. That informs your sell decisions further.And if the double top comes in, on a repeat run and on news…Well, you know what’s likely to come next.
