DLX - 17 months HEAD & SHOULDERS══════════════════════════════
Since 2014, my markets approach is to spot
trading opportunities based solely on the
development of
CLASSICAL CHART PATTERNS
🤝Let’s learn and grow together 🤝
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Hello Traders ✌
After a careful consideration I came to the conclusion that:
- it is crucial to be quick in alerting you with all the opportunities I spot and often I don't post a good pattern because I don't have the opportunity to write down a proper didactical comment;
- since my parameters to identify a Classical Pattern and its scenario are very well defined, many of my comments were and would be redundant;
- the information that I think is important is very simple and can easily be understood just by looking at charts;
For these reasons and hoping to give you a better help, I decided to write comments only when something very specific or interesting shows up, otherwise all the information is shown on the chart.
Thank you all for your support
🔎🔎🔎 ALWAYS REMEMBER
"A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist"
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⚠ DISCLAIMER ⚠
The content is The Art Of Charting's personal opinion and it is posted purely for educational purpose and therefore it must not be taken as a direct or indirect investing recommendations or advices. Any action taken upon these information is at your own risk.
DLX trade ideas
DLX - Deluxe but no liquiditySo DLX put up decent earnings and guidance pre-market, and got a little pop out of the gate then proceeded to tank. You can see that there's no liquidity at all for small caps. The stock was barely trading this morning when I flipped 500 share I bought yesterday.
Had I known it was gonna tank right after I sold I would've bought some puts, lol. Funny thing is that they guided $6.65 - 6.95 for the year which puts them at less than 7 P/E ratio with 2.74% dividend yield. If the market wasn't topped out I'd be buying back the 500 shares, but as you can see there's no liquidity in small caps. When the sell order comes in, it's a straight out tank. It's interesting that it managed to hit both resistance and support all in one day on 7x average volume.
In any case, watch out for small cap stocks, no liquidity at all when they sell off. Explains why small caps haven't been able to make a new high, nobody wants to buy.
DLX Sort OpporunityAn intraday high potential, Back Tested Sort Analysis.
We ll try to find an entry price within the expected pull back zone 73.23 - 76.23 as previously being back tested.
We ll try to enter into the correction of the uptrend movement tracking trend oscillators as below:
A butterfly pattern is shaped signaling a bearish movement.
Price is likely to move within the parallel channel.
OBV breaking down supporting trendline
DETAILS ON THE CHART
NOTE: Entry range area above the entry point, is calculated upon 80% of the recorded pullback back tested past performances
DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money on.