plasmod3...What can you tell us about the "gap day doji" on an...

plasmod3...

What can you tell us about the "gap day doji" on an evening star pattern?

Needs a tight range and higher than volume of the days either side.

Do you call a 34.5 - 40c range tight? In fact the gap doji tail is way too long and whats more, crosses into the body of the long white candle.

No good if the patterns simply look similar...the psychology represented in the patterns are what drive the buy/sell indicators...as such, the nuances of the pattern are critical to our interpretations.

The volume in particular needs to be abberation to signal changing positions...in this case, the volume on the doji gap day were in fact less than the days either side.

Further, by displaying a long dragon-fly shadow, the doji gap suggests we actually saw the equivalent of a gap, retrace and recovery day...and that today, whilst down, represents a secondary test of the gap-day support.

The final flaw in your chart interpretaion is the relativity to the bollinger bands...the so called "gap doji" fell fair and square on the upper bollinger, suggesting that whilst it may have got a little ahead of itsef, it was no means overheated..as such, hardly a classic "gap up" doji scenario.

Two options from here I can see...

1. Significantly lower volumes on Moday, with trading in the 32.5-26c range, with similar low volumes Tuesday...and a similar range...followed by a significant break, and test of 40c. Failure to break here will likely see a retrace to 36 before the final move to the mid 40's.

2. Up day monday, with a 40-42c finish (the lower the better) and followed up with a run to the mid/high 40's before an overshoot scenario and likely further consolidation in the mid 40's.

Look at chart patterns from the 2-6th July...in my view, we are seeing the same psychology play out again, with the white candle of the 2nd equating to the White candle of the 11th...if so, we have another two days of quiet time before a likely Wednesday break.

Could be wrong of course...it could fall to test support at 32c...and even lower at 28c...but given I and I am sure many others will salivate at such an opportunity, I really can't see it happening. But if it did, it would not be a permanent thing...which I suspect is the very reason you are still contributing to a thread in a stock you have just sold!

lol

Anyway...it is all opinion...which is of course makes a market...but I have to say, I am yet to see anything even remotely close to what might be viewed as a technical exit trigger.

Until then, I will play the probabilites and not scrap about over 2-3c swings.

I fear many will over-trade this just as they did with MPO...where I suspect many lessons about over-trading were learnt.

Cheers!