February 5th 2008
Trading Ideas for 2/05
I have four trades I’m looking at for 2/05. They are showing different, but classic patterns. There’s one pattern that makes these trades unique. Do you know what it is? Answer at the bottom of the post.
HOLX looking 1-2-3ish. Setup will be intraday.
Nice Double Bottom here.
Ascending Triangle here.
Just another Flag.
Ok, aside from the 1-2-3, double bottom, triangle, and flag pattern. All of these stocks have NR7’s. An NR7 is a bar whose range is smaller than the previous six trading days. If volitility expands and contracts, then a NR7 is another way to graphically demonstrate that volitility has contracted. It would follow logically that volitility will now expand.
UPDATE: Volatility sure did expand. Unfortunately, price went in the wrong direction.
If you google NR7, trader mike has a good post out there. I’ll write more on this subject in the future.
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