Imminent Drop For CHRW?
Based on historical movement, the peak could occur anywhere in the larger red box for which we are due. The final targets are in the green boxes. The pending bottom should occur within the larger green box as has been the historical case. Half of all movement has ended in the smaller green box. In this instance, the signal indicated SELL on October 19, 2021 with a closing price of 97.56.
If this instance is successful, that means the stock should decline to at least 95.8 which is the top of the larger green box. Three-quarters of all successful signals have the stock decline 3.929% from the signal closing price. This percentage is the top of the smaller green box. Half of all successful signals have the stock decline 6.523% which is the end point of the black dotted arrow. One-quarter of all successful signals have the stock decline 12.32% from the signal closing price which is the bottom of the smaller green box. The maximum decline on record would see a move to the bottom of the larger green box. These are the same concepts for the levels in the red boxes as well.
The ends/vertical sides of the boxes are determined in a similar fashion. The trough of the decline can occur as soon as the next trading bar after signal close, while the max decline occurs within the limit of study at 35 trading bars after the signal. A 1% decline must occur over the next 35 trading bars in order to be considered a success. Three-quarters of successful movement occur after at least 7 trading bars; half occur within 13 trading bars, and one-quarter require at least 25 trading bars.
The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement.
As always, the stock could decline the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never decline (and the green boxes may never come into play).
If this instance is successful, that means the stock should decline to at least 95.8 which is the top of the larger green box. Three-quarters of all successful signals have the stock decline 3.929% from the signal closing price. This percentage is the top of the smaller green box. Half of all successful signals have the stock decline 6.523% which is the end point of the black dotted arrow. One-quarter of all successful signals have the stock decline 12.32% from the signal closing price which is the bottom of the smaller green box. The maximum decline on record would see a move to the bottom of the larger green box. These are the same concepts for the levels in the red boxes as well.
The ends/vertical sides of the boxes are determined in a similar fashion. The trough of the decline can occur as soon as the next trading bar after signal close, while the max decline occurs within the limit of study at 35 trading bars after the signal. A 1% decline must occur over the next 35 trading bars in order to be considered a success. Three-quarters of successful movement occur after at least 7 trading bars; half occur within 13 trading bars, and one-quarter require at least 25 trading bars.
The black dotted arrow represents median historical movement. Medians are a good metric, but they are just one of many I use when forecasting future movement.
As always, the stock could decline the very next bar after the signal without looking back (therefore the red boxes would not come into play) or the stock may never decline (and the green boxes may never come into play).
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!
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