3C Pattern 3C stands for "Cup Completion Cheat" and it is the earliest possible time you can take a position in a stock as a trader. Visually, this pattern looks like a cup-with-handle with the difference that there are two handles. The first mini-handle is referred to as the "cheat" (because it feels somewhat like "cheating" according to the author). This...
Key Elements of a VCP Understanding the key elements of a VCP is crucial for successful trading. Here are some of the key elements: Tightening from left to right within the base: You want to see multiple contractions, at least two, within the base. Relative strength and accumulation signs: Watch for these signs before this price base and within the overall...
I f a stock moves beyond its resistance level, it will often go on to make a sustained upward move. If it moves past its support level, it may be about to go on a bear run. Support and resistance levels are seen as 'stronger' if a stock hits them multiple times. In turn, stocks that break through these 'stronger' barriers are more likely to then go on extended...
A broken trendline is a technical signal that can suggest a change in trend is at hand. If low volume (rather than high volume) accompanies the break of a trendline, the signal is not as strong or convincing. It can make sense to wait a day or two to make sure that the trendline break is legitimate. Once a position is opened, risk management—in the form of...
Ichimoku cloud bounce on 1 hr 4 hr 26 ma bounce and on 1 day 9 ma bounce