Wednesday, March 03, 2010


Here is an example of the Trend Model flipping Long before an apparent  (pending, not yet realized) breakout:

AVXL Weekly Trend Model

A move above $3.00 would bring create a lot of open sky on the upside.  On the other hand, the stock is bumping up against massive 12-month's worth of resistance here.  You think this game is easy?  Call this one right.



Digger said...


I think I understand how to compute the raw figure for this idea but are you adding/subtracting it from the close or the extreme high/low?
I have used a 21 day x 3 for a trailing stop but this is an interesting use.

A said...


I really don't put my head under the skirt (or is it hood?) on these matters, let the code downloaded from the source do the math.


Anonymous said...

I just have this problem,about entering a stock after it breaks out on the top this one AVXL ,yes youre right, if it breaks above 3.00 could fly. But the play feels like I'm chasing the stock. I much rather try and get in from the low side if possible. so if AVXL finishes this subwave 5 wave move here.... corrects in an ABC back to a nice fib ,maybe 50% at the 2.25 area and HOLDS.... I want to enter a buy at 2.25 support. if indicators support the idea.

Is that the wrong way to play something like this. ?
your comments much appreciated here.

A said...

There is nothing wrong with what you are suggesting and it could or even should work as good or better then my methods. Its a matter of temperament, which technique lends itself to your particular discipline to follow through and act decisively.

In other words, find something that works and......

Anonymous said...

....and trade it