- This area is the major support or resistance
- Once broken out or broken down, usually a trend reversal sign
- The normal form is a three waves combination. If more than 3 waves involved to make a new high or low, that means the climax run is coming and the end of the major trend will be in the climax run up/down.
- Another sign of trend reversal is that the new no-trend zone is formed in the opposite trend channel !
Tiger Gao Chart Reading Comments -5
The Importance of the No Trend Fluctuations
Tiger Gao Chart Reading Comments - 4
The price movement's life cycle
- Pivot point bottom
- Confirmed trend reversal
- Complex chart pattern set-ups
- Breakout of the complex chart pattern set-ups
- Climax run up
- Pivot point top
- Confirmed trend reversal
- Heading down until another pivot point bottom is formed.
No easy money in the market
No easy money in the market !
Today's market action shows some weakness. It just doesn't ignore the bad news anymore.
I think I may be too bullish last night! The uptrend line drawn last night is broken today with a gap. More important, NASDAQ close below 1800, which is an important level. As mentioned last night, the no trend market fluctuation may continue !
The market is still in a correction mood since I marked the top of NASDAQ on June 12, 2009, which are quoted below:" Based on the moving pattern of QID this morning, I feel that yesterday 's 1,879.92 of NASDAQ may be a top/high for some time. "
Based on today's action, I feel the market correction will continue with a fluctuation pattern between 1880 and 1665. Here is the chart for these two numbers. That's the battle between bulls and bears. It may last some time until either bulls win or bears win.
If bulls win, a breakout of 1880 will be the sign.
If bears win, then a breakdown of 1665 will happen.
Either breakout or breakdown will bring in a good market trended move, that's where some easy money can be made.
Personally, I am still bullish. Once 1880 is broken out successfully, I think, the market (NASDAQ) could run up to above 2000.
The most difficult part for trading in the stock market is right here. Namely, when the market entered into a no trend fluctuation period. I have no clue how long it could last. I also don't know how many times the market could be bounced back and off by the two lines before a breakout or a breakdown.
One way is to stay away from the market and have a good time to enjoy the life.
Another way is to focus more on individual stocks. For individual stocks, it's very important to plan ahead and carry out the plan accordingly!! I usually employ two ways to exit a stock: one is the technical target is reached. The other one is the weekly chart shows the topping pattern!
Again, no easy money in the market. The key is the patience as well as knowing why you buying and selling.
Enjoy the long weekend ! It should be very fun !
Today's market action shows some weakness. It just doesn't ignore the bad news anymore.
I think I may be too bullish last night! The uptrend line drawn last night is broken today with a gap. More important, NASDAQ close below 1800, which is an important level. As mentioned last night, the no trend market fluctuation may continue !
The market is still in a correction mood since I marked the top of NASDAQ on June 12, 2009, which are quoted below:" Based on the moving pattern of QID this morning, I feel that yesterday 's 1,879.92 of NASDAQ may be a top/high for some time. "
Based on today's action, I feel the market correction will continue with a fluctuation pattern between 1880 and 1665. Here is the chart for these two numbers. That's the battle between bulls and bears. It may last some time until either bulls win or bears win.
If bulls win, a breakout of 1880 will be the sign.
If bears win, then a breakdown of 1665 will happen.
Either breakout or breakdown will bring in a good market trended move, that's where some easy money can be made.
Personally, I am still bullish. Once 1880 is broken out successfully, I think, the market (NASDAQ) could run up to above 2000.
The most difficult part for trading in the stock market is right here. Namely, when the market entered into a no trend fluctuation period. I have no clue how long it could last. I also don't know how many times the market could be bounced back and off by the two lines before a breakout or a breakdown.
One way is to stay away from the market and have a good time to enjoy the life.
Another way is to focus more on individual stocks. For individual stocks, it's very important to plan ahead and carry out the plan accordingly!! I usually employ two ways to exit a stock: one is the technical target is reached. The other one is the weekly chart shows the topping pattern!
Again, no easy money in the market. The key is the patience as well as knowing why you buying and selling.
Enjoy the long weekend ! It should be very fun !
Tiger Gao Chart Reading Comments -3
Multi Scale Multi Level (MSML) Analysis
- To better understand the price movement in the chart, the MSML analysis is required.
- Multi scale means to analyze the chart from different time frames such as 1m, 5m, 15m, 30m, 60m, days, weeks, months, quarters, years.
- Multi level means to analyze the chart from different view points such as pivot points, trend lines, support lines, reversal lines, chart patterns.
The up trend continues
The up trend continues today. It is still wise to be a bull !
When you are right, you need to sit tight ! Only buy and sell when buying and selling signals showed in the chart. This March, I bought in BAC below $3. Then with in a short time my BAC gained more than 200%. What a windfall profits in a short time, I thought. So I took the nice profits. But now when I look back, what a joke, BAC runs to the $15 range. That's a 5 bagger in 2 months. The lesson I learned here is: "Never ever judge for the market ! Just follow the market trend !" A lot of profits gained already or a lot of losses will never be the reason for you to sell a stock !
When you are right, you need to sit tight ! Only buy and sell when buying and selling signals showed in the chart. This March, I bought in BAC below $3. Then with in a short time my BAC gained more than 200%. What a windfall profits in a short time, I thought. So I took the nice profits. But now when I look back, what a joke, BAC runs to the $15 range. That's a 5 bagger in 2 months. The lesson I learned here is: "Never ever judge for the market ! Just follow the market trend !" A lot of profits gained already or a lot of losses will never be the reason for you to sell a stock !On the other hand, buying in only when the market says buying. Never buying because the company is super good. The real value of stocks are always zero !! Stocks are just a trading tool.
Yesterday, I mentioned that "As long as the price motion stays inside the channel, the bulls will win !" So today, the bulls win !
I expect NASDAQ will breakout 1880 very soon. It may be next week after the long weekend, if not tomorrow.
Tiger Gao Chart Reading Comments -2
There are only three major trends in the chart:
- Trend up
- Trend down
- No trend fluctuation
The bull's moving channel
The bull's moving channel is marked in the chart below. As long as the price motion stays inside the channel, the bulls will win !
The chart is still pretty bullish, although it is in a consolidation mode. I expect the market will continue go up after the consolidation. Namely, a breakout of 1880 is very expect able.
The chart is still pretty bullish, although it is in a consolidation mode. I expect the market will continue go up after the consolidation. Namely, a breakout of 1880 is very expect able.As mentioned in the big picture, "Unless1766 is successfully broken down, I think being a bull is following the market ! ".
So I am still following the trend and be a bull.
My 10 baggers are doing extremely well even in a rainy day for bulls:
- CLFD up 8.11% today
- LIMC up 3.75% today
- TYPE up 1.34% today
Tiger Gao Chart Reading Comments -1
TOP and BOTTOM
- All the top and bottom are pivot points.
- Especially the pivot points with new higher high, and new lower low.
- Being very alert with these pivot points because important tops and bottoms may be formed here.
- For important top and bottoms, pivot points are always combined with trend line broken down or broken out.
A full cycle of the profitable trade
A full cycle of the profitable trade
- Trend reversal breakout
- Complex pattern breakout
- Climax run up
- Selling off
That's my personal understanding so far.
When the full cycle is not developed as expected, cut loss quickly is a key !!!
Not all trend reversal is 100% for sure !
Not all complex pattern is 100% broken out !
What we need to do is to patiently wait for the full cycle of the profitable trade to be developed, as a observer !!! Only when buying signal shows, then buy ! Only when selling signal shows, then sell !
The most powerful trade is the complex pattern breakout, its advantages:
- Expectable profit
- Expectable loss
- The time cost for the trade is low
The key is to know where the stock is during the full cycle ! Of course, the patience is another important key. We need to wait for the right time to get in as well as the right time to get out !
Nice Day
Nice day today !
Notice the NASDAQ daily chart
Notice the NASDAQ daily chart
- the gap up is not filled for 4 days so far
- If pull back, this could be a target
- the up trend line in the daily chart still holds well so far
The big picture so far
The big picture so far for the US stock market. Take NASDAQ as an example, below is the chart.
Unless1766 is successfully broken down, I think being a bull is following the market !
Unless1766 is successfully broken down, I think being a bull is following the market !My buying rules
Tiger Gao's No. 1 buying rule:
- Buying for an expectable complex pattern breakout play
Tiger Gao's No. 2 buying rule:
- Buying for an expectable trend reversal play
Otherwise, holding cash and patiently wait for the buying opportunities.
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