Thursday, August 16, 2012

Why I trust the ABC pattern


Lets use this chart of Cellcom Israel Ltd. (CEL)
1) Volume (huge)
2) Downtrend intact
3) Allow price to zoom up, break that resistance, and find "A"
4) Then, allow your normal pullback, price will find a support at "B"
5) "B" must be higher than this current low !
6) Good news, we need a strong "key event" to send price towards "A" again
7) When price breaks above "A", we have our "C" trigger

PS : Patience ... Focus on those blue arrows, keep them in your mind, and remind yourself that if price does NOT behave this way, do NOT buy CEL !

No comments: