This however is a trick because only one of these qualifies as a Blow-off bottom. If you guessed INTC you would be correct. Now guess which one I played today - that's right ATHR which I turned into an investment. I'm only 14 cents to the bad and it will go up on Monday.
The key to the blow-off bottom is the amount of volume and the shape of the candlestick. It must be a red hammer or hammer-like with good volume. Now - take a look at the 3rd and 4th candles on INTC and recall the lesson in Candletricks earlier. If I were to merge these two candles (which I could because they fit together nicely) they would form a nice large hammer-like object with good volume. Then the next candlestick, the white hammer-like object says, buy me, buy me oh please buy me.
Of course, I bought ATHR which fits none of the rules. I could have made a little on it but I wanted a lot and the drop on the third candle from the end came suddenly (indicated by low volume and large movement). As I said it's now and investment and Monday will see the end of it.
No comments:
Post a Comment