Thanks gj, yes, buying at the lows of a trading range or...

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Jako8557

19,112 Posts.

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23/10/17

10:38

Post #: 28108332
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Originally posted by gj0201 ↑

@Jako8557 After all these years of Xing paths on chart threads I hope some of your fantastic WOW (Words of Wisdom NOT the share LOL) might be starting to sink in to my "methods" (read thick head).
Your weekly "tute" at the start of the thread has become a must read ... and straight to the "pool room" for me.
I actually look for springs these days! and todays accumulation ; most say "buy the break out" as it is "confirmation" and even better look for a backtest.... but FWIW I am starting to believe a buy at the bottom of an identified trading range/ accumulation phase is the way to go.

have TAS (tight a stop) just below the support line and then have trading range + any potential break out as profit. .... just saying!

eg. SMN if it did a bit more "accumulating" at around current levels and then a quick dump (my language)/ test (your language to $1 ish I reckon it would be "back up the truck" time. Of course if it gets there it will be accompanied by "bad press" and you just have to have conviction to step up to the plate.

Great work getting thread off the ground and the concept of featured chart working a treat!
Well done again!

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Thanks gj,

yes, buying at the lows of a trading range or accumulation zone reduces risk quite a bit, but the downside is that you don't know how long it will take for the markup to begin.
On the other hand, buying the breakout (or test of the breakout), usually means things will move straight away.
It is a two edged sword to some extent I guess.
Another way is to break your parcel size into halves (or thirds), and make an initial purchase around the lows of the range, then play the waiting game, and buy again on the breakout (and/or the test of the breakout).....or something like that.

and yes, if you can catch SMN on a shakeout down to $1.00 it would appear a good buy...... it would take some courage and trust to buy strongly when price was down like that.......but probably worth it (it would only be if the accumulators are dumping their stock, for some reason, that would catch you out - which is unlikely, but always possible).

cheers

Last edited by Jako8557: 23/10/17
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