This is the only post I am doing on using these charts for bottom fishing. Not a practice I recommend but has obvious benefits when you get it right. The other issue is stocks will have layers of resistance to break through on the way up so progress can be slow. The trading chart shows once the trend has gone, the price cascades down. The rising trend was not particularly solid. Tried to rally in July and failed. Once gold was falling, price fell in a heap. . . The short term chart below. In November (yellow B to C) the stock tried to rally and gives a very good idea of how to time entry and position stop losses. Appeared to establish a short term uptrend and generated a higher high (my normal entry point in this situation). The stop loss would be the red box (lower low - cursor) where trend had obviously failed. Lose 10% on that trade. Never got back to purchase price of 4.5c. Could not break the falling trend so kaput. . Is this time different? Yes and no. There was a capitulation sell-off. A good indication selling done. The stock rose above the entry price (blue - 2.5c) whereas earlier the blue was at the top of the column. Timing entry - could consider waiting to see if new trend is established/tested and buy on the bounce at 2.4c but may not go there. Must hold the fledgling rising trend so set a stop loss at 2.1c (big hit if it continues down but less risk this time). Also should give a double bottom a chance to develop - bullish. As price follows trend up, use a rising stop loss. Once your stop is at 2.6c, leave it there till the breakout. Cover trading costs and a bit more. Can expect the trend to buckle when the two trends merge so when close to breaking out, need to allow a little more room with the stop loss. After a breakout on this chart then the chart above should be watched. Should develop a rising trend and will have serious resistance. Expect a pull back of >15% when it hits. Could be up >100% before major resistance. Take some profit and potentially free-carry. Too much fiddling around for me with chart watching and there are plenty of stocks on a major rising trend. Going to put a buy on this one at 2.5c. A good time to average down if necessary. .
