G-Pattern: potential plays

[eliteG]

I thought we could kick start the TA board with the G-pattern.  Under this thread we can all leave charts we think are in the 2nd stage of the g-pattern and discuss their strengths/weaknesses. 

And so 3sof became the authority on G-pattern analysis.  Let it be written.  Let it be done. 

*i will start another thread showing many past g-pattern plays(if you don't know what the g-pattern is)

G-pattern definition and examples: http://www.3stocksonfire.org/trading/index.php?topic=2187.0

[Ramsburg]

Great start G

What about an Educational post with the basics about the G-Pattern, like:
How to recognise a G Pattern
The Strategy on a G-Pattern
The story of the G pattern (I named it !!!!) heheheh 

I think most of this is already posted on the other board, so it's maybe just some copy/pastes...

I'll have to post some TA topics as well, probably I'll start with the H&S pattern

regards !

[eliteG]

What about an Educational post with the basics about the G-Pattern, like:
How to recognise a G Pattern
The Strategy on a G-Pattern

very good ideas.. I will get to that eventually  ... wish we could start sub-topics:

gpattern-

       - recognition

       - strategy
                                             
       - examples
              -successful
              -failed
           

can't wait to read your H&S strategy...

[fous]

Thought i'd take the opportunity to get this thread runnin . Currently in stage 2 after a large spike in volume. Here is the chart of HMSL. Price increasing with a steady rise in Volume. Could be a winner. We'll just have to wait and see!

Regards,
Fousc

[Stocksquire]

keep an eye on CRGO for a break of around .027 on continued strong volume:

[422fwhp]

Great read!  I look forward to reading more of these informative posts.  Keep up the excellent work.

laterz...Jody

[bickley]

kinda new to this msg board but i have been following the G-spot method for a bit and I think I'm ready to start picking them but i need some confirmation.  Tell me what you guys think of DDSI?  It looks like its getting set to find the G-spot

[Stocksquire]

kinda new to this msg board but i have been following the G-spot method for a bit and I think I'm ready to start picking them but i need some confirmation.  Tell me what you guys think of DDSI?  It looks like its getting set to find the G-spot

DDSI is a potential g pattern play if it can get back to the .0027 level and take it out with good volume. It would be considered to still be in phase II consolidation at this point.  If you want to play the stock strictly as a g pattern play, the time to buy would not be until .027 is taken out, confirming continued interest.

You could argue that there is a more recent g pattern play at the .0017 level, but I personally am not crazy about that pattern, as the shadow from Friday penetrated the low of that pattern, and the volume was not as strong (but still good) during phase 1.

Good luck 

[eliteG]

G-pattern potential play:

CPTH -

Critical Path, Inc. delivers software and services for messaging and identity management. The company's messaging application products include a messaging server, a personal address book server, a calendar server, an Internet file server, and a notification server. These solutions, which are available both as licensed software and as hosted services, provide integrated access to a range of communication and collaboration applications from wireless devices, Web browsers, desktop customers, and voice systems. Critical Path's identity management products include a meta-directory server, a directory server, and password management. These products organize and manage user identity information, such as names, user ids, passwords, email addresses, telephone numbers, and group affiliations. Its customers include enterprises, wireless carriers and telecommunications providers, broadband companies and service providers, and government agencies and postal authorities. The company offers its products and services in North America, Brazil, Denmark, France, Germany, India, Ireland, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland, and the United Kingdom. The company has strategic partnerships with LogicaCMG, Comverse Technology, Inc., Capgemini, the Hewlett-Packard company, EMC Corporation, Epok, Inc., Orasi Software, Inc., VIA NET. WORKS, Inc., CTI2, SAIC, RSA Security, Inc., Entrust, Inc., and Computacenter. Critical Path was founded in 1997 and is headquartered in San Francisco, California.

This is a Nasdaq stock so we can actually obtain a bunch of info on it unlike most BB/pink g-pattern stocks.

yahoo link:  http://finance.yahoo.com/q?s=CPTH

Shares Outstanding:   34.96M
% Held by Insiders4:   4.79%
% Held by Institutions4:   11.70%

this leads me to believe we are dealing with a small float, not sure.

company website: http://www.criticalpath.net/en/1/homepage/

Now for the TA side of things:

Stockcharts.com link:  http://stockcharts.com/def/servlet/SC.web?c=CPTH,uu

TA:

chart 1(below): daily 3 month chart



chart 2(below): daily 1 year chart



Trading Strategy:

This is what I suggest but it is not the only way and adjust to your risk level!

Entry: On a heavy volume move up around the g-spot of (0.55) would make a nice entry with an initial stop @ no lower than .38!!! this violates the reason this is a g-pattern!  Heavy volume move up should not have its low broken.  The farther away from the g-spot you are the riskier it gets.  This play is very risky so you must have a safe entry.  Do not ask me if 0.70 is a safe entry.. it is near the 1st reistance zone which is a tough one to beat.  I'm not saying do not enter there but know..be sure that you understand that you are taking on a lot more risk!

Exit: well you should have a stop loss on every play and that should be adjusted to your risk level.  But what about target sells?  These g-pattern plays will deal with your greed.  Some of these move over 6 bags.  some of them only move 50% (only?!)  So thats up to you.  Just make certain you take profits because if you look at the examples most of the g-patterns fall SHARPLY when they lose momentum.

So what we have here is a play that has not..it has NOT triggered yet.  It triggers on a high volume move that takes out .55.  Why is this so important?  If you enter here this stock may never get over 0.55 for its whole entire life.    If it triggers then in my opinion it is destined to get to $1 on an intraday spike.  That is nearly a 100% move from its g-spot.  If it only makes it to .75(1st resis area) that is a 36% gain.

Trade it GOOD! 

**Note: I did not take into account any fundamentals.  G-patterns are based on a visual pattern.  Do your DD!

[eliteG]

..and PRTL looks to be a g-pattern potential.  Strategy would be similar to CPTH(above) 

PRTL -

Primus Telecommunications Group, Incorporated operates as an integrated telecommunications services provider, offering international and domestic voice, wireless, Internet, voice-over-Internet protocol (VOIP), data, and hosting services to business and residential retail customers, and other carriers. The company's services comprise international and domestic long distance voice services; VOIP services, including retail and wholesale VOIP services to Internet service providers, telecommunications carriers, and retail customers; Internet and data services consist of asynchronous transfer mode, frame relay, and Internet/Internet protocol services, as well as Web hosting, virtual private networking, and co-location services; prepaid service that are used by customers for domestic and international telephone calls; toll-free services include domestic and international toll-free services; reorigination services; local switched services; and wireless services. It provides its services to small-and medium-sized enterprises, multinational corporations, residential customers, and other telecommunications carriers and resellers. The company's global network consists of 18 domestic and international gateway switching systems in North America, Australia, Europe, and Japan; undersea and land-based fiber optic transmission line systems that carry voice and data traffic across the network; and global network and data centers that use a high-bandwidth network standard and Internet-based protocol to connect with the network. Primus Telecommunications was founded in 1994 and is headquartered in McLean, Virginia.

company website: http://www.primustel.com/

yahoo link: http://finance.yahoo.com/q?s=PRTL

stockchart.com link: http://stockcharts.com/def/servlet/SC.web?c=prtl,uu

chart 1(below): daily 6 month



Chart 2(below): closeup of recent price action.  We have some support in magenta:



Trade it GOOD! 

[Peluska]

I think this could be a break from some kind of G-Spot.

[Stocksquire]

TMTA is a potential g pattern play.  It needs to take out $2.07 on strong volume.

[Stocksquire]

G-pattern potential play:

CPTH -

Critical Path, Inc. delivers software and services for messaging and identity management. The company's messaging application products include a messaging server, a personal address book server, a calendar server, an Internet file server, and a notification server. These solutions, which are available both as licensed software and as hosted services, provide integrated access to a range of communication and collaboration applications from wireless devices, Web browsers, desktop customers, and voice systems. Critical Path's identity management products include a meta-directory server, a directory server, and password management. These products organize and manage user identity information, such as names, user ids, passwords, email addresses, telephone numbers, and group affiliations. Its customers include enterprises, wireless carriers and telecommunications providers, broadband companies and service providers, and government agencies and postal authorities. The company offers its products and services in North America, Brazil, Denmark, France, Germany, India, Ireland, Italy, Japan, the Netherlands, Spain, Sweden, Switzerland, and the United Kingdom. The company has strategic partnerships with LogicaCMG, Comverse Technology, Inc., Capgemini, the Hewlett-Packard company, EMC Corporation, Epok, Inc., Orasi Software, Inc., VIA NET. WORKS, Inc., CTI2, SAIC, RSA Security, Inc., Entrust, Inc., and Computacenter. Critical Path was founded in 1997 and is headquartered in San Francisco, California.

This is a Nasdaq stock so we can actually obtain a bunch of info on it unlike most BB/pink g-pattern stocks.

yahoo link:  http://finance.yahoo.com/q?s=CPTH

Shares Outstanding:   34.96M
% Held by Insiders4:   4.79%
% Held by Institutions4:   11.70%

this leads me to believe we are dealing with a small float, not sure.

company website: http://www.criticalpath.net/en/1/homepage/

Now for the TA side of things:

Stockcharts.com link:  http://stockcharts.com/def/servlet/SC.web?c=CPTH,uu

TA:

chart 1(below): daily 3 month chart



chart 2(below): daily 1 year chart



Trading Strategy:

This is what I suggest but it is not the only way and adjust to your risk level!

Entry: On a heavy volume move up around the g-spot of (0.55) would make a nice entry with an initial stop @ no lower than .38!!! this violates the reason this is a g-pattern!  Heavy volume move up should not have its low broken.  The farther away from the g-spot you are the riskier it gets.  This play is very risky so you must have a safe entry.  Do not ask me if 0.70 is a safe entry.. it is near the 1st reistance zone which is a tough one to beat.  I'm not saying do not enter there but know..be sure that you understand that you are taking on a lot more risk!

Exit: well you should have a stop loss on every play and that should be adjusted to your risk level.  But what about target sells?  These g-pattern plays will deal with your greed.  Some of these move over 6 bags.  some of them only move 50% (only?!)  So thats up to you.  Just make certain you take profits because if you look at the examples most of the g-patterns fall SHARPLY when they lose momentum.

So what we have here is a play that has not..it has NOT triggered yet.  It triggers on a high volume move that takes out .55.  Why is this so important?  If you enter here this stock may never get over 0.55 for its whole entire life.    If it triggers then in my opinion it is destined to get to $1 on an intraday spike.  That is nearly a 100% move from its g-spot.  If it only makes it to .75(1st resis area) that is a 36% gain.

Trade it GOOD! 

**Note: I did not take into account any fundamentals.  G-patterns are based on a visual pattern.  Do your DD!

we took out .55 today, and looking good so far.  the volume is starting to pick up.  nice pick EliteG! 

[JMoney]

Updated chart on TMTA, it still has not broken the boundary.

Yo Elite, what type of scan do you use on stockcharts.com to find the G-Patterns?

***UPDATE*** - http://biz.yahoo.com/cbsmb/050823/9d4b8bd8b205427baaa8566c90431a26.html?.v=1

TMTA has regained nasdaq listing. This will probably push it through the G-Spot. This might be good for tommorow if you can get in at a good price. Elite you got any input?

[Stocksquire]

HYRF is another one to keep on the g pattern watch list.  They had huge news 2 weeks ago that another company, EYI Industries, has a letter of intent with a company in China to distribute $210mil worth of the Code Blue water filters that HYRF manufactures.  HYRF received a nice price and volume spike on the next trading day (phase G1), but has since consolidated (phase G2). It still has a little way to go to get to the g spot at .23, but the volume was good yesterday, so I'm putting the alert out now.  Remember, if you are playing this as a g pattern play only (and not a position play), then you'll want to wait for a break of .23 on big volume before entering.

Here is some info about HYRF posted by David Randolph: 

http://www.3stocksonfire.org/trading/index.php?topic=2299.0