Anatomy Of A Trade: The One That Got Away by Thomas Bulkowski
Have you ever traded with exceptionally bad timing? Heres one to ponder.
On January 5, 2016, I was flush with cash, so I started window-shopping for stocks to buy. Sometimes I use a top-down approach, where I assess the condition of the general market, then find a stock I like on the longer-term chart, and drill down to the daily scale.
Figure 1 shows the market landscape as represented by the Standard & Poors 500 index. In the fall of 2015, the index bottomed at A and B, with a tall peak between those bottoms at C. The ABC pattern is a double bottom, which point D confirmed as a valid pattern when the index closed above peak C...