Buy-Me Formations

Sometimes you'll come across a stock that just keeps signalling buy-me over and over again. This past week AKAM was such a stock. Five buy-me formations in three days. The circles show the buy-me formation and the arrows show where the trade probably should have been terminated. I didn't play this stock, just something I came across in my never ending search for good setups.



The setups at a and b are signalled by hammer formations after declines. The c setup is the best, a gap down with a long tail, a black candle followed by a long white candle. D and e both have a hammer print after a decline. If you were feeling good about the trade you might not have sold the d entry until the end of the day.


Again the chart is from prophet.net - an excellent site.