Pretend short on CPH noted.
Day off today. Did fun stuff with my real kids. That does not mean I can not stalk HC though .
I don't look at many stocks, but when I watch the moving numbers, I like to see them move. So, I often glance to the biggest mover and loser in the ASX 300, and if one stock is soaring like an eagle or dropping like a stone I like to know why and watch. The market always overreacts. If you can pick the turning point it might be worth a punt. I don't mind taking a small position around a large candle. I don't actually go and research the stock itself much. VTG and TRS are good cases in point. I thought the VTG drop was not justified, so I was expecting a bounce. I think TRS drop is mostly justified, and when you throw in a 50% LVR ratio allowance on Nabtrade, I am expecting a few margin calls to follow, and hence the SP to drop some more. It will have at least a dead cat bounce early next week. The patterns with these things as you know are similar, so get to know the pattern, feel the vibe of the psychology and presto you are in the money. Because of the increased trading, subtle patterns become more accentuated and are easier to pick and learn. When I was watching TRS late in the afternoon at around 5.30, it only took less than five minutes of watching for me to decide it was being pushed up (I would not have been able to pick that up so quickly six months ago, and not at all twelve months ago) and sure enough half to an hour later it was down to 5.20 and then closed at 5.11. And it helps pass the time. That is why I like to look at wounded stocks, though the other reason you posted might also be correct .
For you see when you really think about it human behaviour is pattern based, and TA is a pictorial representation of this in an attempt to make it easier for the observer to identify the pattern occurring at any one time.
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