Trading IBD Stocks

Lakedog, first thanks for the input, still a bit esoteric to me as I don’t know candle names. Good to see other points of view.

As far as asymmetrical cups go, I have seen them talk about some odd ones without much consternation. Andy pointed out a flaw in the base, a cup should not go down 48% like this did unless the market was going down big too. This was a big miss on my part, but I am feeling ok at this moment.

I noticed that on the previous base, it shot up 48% in a short period, thus activating the 8 week hold rule. It went from the 15.24 breakout to a $32.70 high. So a perfect trade was a double. The day after that high, it fell sharply and ended near the bottom of the trading range. That was a yellow flag. The next day was bad and it closed below the 21dma. I would hope I would have been wise enough to take at least half off. I have done that before. That gets you out at $26, still a hefty profit. If one had waited for a violation of the 50dma to sell, that gets you out at around $23, which is still a 50% gain. A 20% trailing stop loss would have set at the high of $27.38 and got you out at $21 something. At that point it was making its first test of the 21dma and it held, so if one had the guts to hold though that, you were in good shape.

I guess the point of this babble-fest is that we are seeing moves like that 48% breakout and we might learn from thinking how we would have and should have played this one.

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