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Figure 13.4
Results of the Revival Sell
Copyright 2000, TradeCast® Ltd. |
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in the figure, this stock continued to move downward after you exited the trade. Chapter 15 talks about other exit strategies that will allow you to capture more of this profit. |
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The wedge buy is a consolidation breakout opportunity. In this setup, the stock has been consolidating for several days. You are looking for a sign that it is ready to break out strongly, and you are looking for an indication as to which way it will break out! |
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Please refer to Figure 13.5 while you review the criteria for the wedge buy setup: |
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For the last trading day (see 3 on figure), the closing price is above the 20-day moving average. This is your clue as to directionyou are expecting the price to break out to the upside. |
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Confirm consolidation over the past three trading days: |
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