Traders Action Zone

Everyone who reads this BLOG recognizes this as what I call the Return to 4 (which can also be a return to 8 or a return to 21) -



And I'm deliberately using this particular stock because I wanted to show that you don't have to have a gap-up to obtain the same basic results from the same basic rules. But this guy, Taz Trader, calls it the Traders Action Zone and describes it thoroughly in this post - Trading Pullbacks.

So go read about it on his BLOG because he has some interesting things to say and shows a neat idea using the 10 SMA with the 30 EMA. And there is nothing wrong with that.

This is not an endorsement of TAZ trader's commercial site - just some good ideas my readers should know about.

But be careful waiting for pullbacks because sometimes this is what happens -



And you miss most if not all of the move. But if you came upon this in late June let's say you would be hard pressed not to say to yourself - Hmmm - 10 SMA crossed the 30 EMA, last two weeks pulled back to touch the 30 EMA - I think I'll take a flyer - and voila - profit. (CRVL had a 3 for 2 split so the prices shown are not the prices you would have gotten at the time).