FAQs Frequently Asked Questions
Market Lab Report
Why does a specific formation wake your interest (why do you like certain formations?)
Charts are human nature on parade. On a risk/reward basis, certain formations have shown themselves to be profitable such as Undercut & Rally. That said, the only constant when it comes to markets is change. The pocket pivot which I observed then formalized in 2005 continues to work, but the suggested entry point has changed. Back then, markets were not nearly as distorted or noisy so buying on strength was your best strategy. Stocks with sound pocket pivot price/volume structures and strong fundamentals would often not pullback if one did not buy on that day on strength. After 2008, the market changed due to distortions created by QE which affected entry points. By 2012-2013, buying on a constructive pullback was a better strategy as one's risk was reduced. Meanwhile, missing a trade became less likely as the noisier market often created entry points on pullbacks after the stock had its pocket pivot.
|First published:||5 Apr 2021|
|Last updated:||5 Apr 2021|