After a weak market was triggered in January 21st 2010, the stock price tumbled $0.40 and found base
in early February as detected by expert signals (Price Pull Back Up and Demand Coming in).
For risk averse traders, this could be opportunity for trade but for my trading style, I would like to wait a little
longer to observe if the trend was indeed trending higher. I would wait for the price bar to change from Red Colored Bar to Green Colored Bar and the Trend Cluster at the bottom of the chart (just below Volume Bar) turned from Red to Green.
Luckily for me, I have a proprietary scanner that would pick up stock that meets such a strict criteria (Test Base + Go Long1) from the chart above.
This combination means that after some weaknesses in the background for sometimes, the stock is nolonger falling south (Stage 4) but starts to move sideway (Stage 1) to consolidate strength.
Once the strength is built up to move northward, a "Test Base" is usually good to know that the selling activities have been absorbed and price is ready to move up with no selling pressure.
With "Go Long1" picks up after "Test Base", I know that the Professionals are ready move this stock price higher definitely. Look at the chart above and see for yourself.
Again and again, this combination is always ready to pick up any stock that is ready to stage an upmove.
Although there is no certainty in trading, there is always the probability of a good setup with strict money
management scheme to capture this profit opportunity.
Thanks for reading and many Profitable Trades ahead!
