A good strategy to play : double bottom

[sebfr]

An another example :
HSKA

[sebfr]

Hi,

What are you thinking about BIPH ? Double bottom formation ? 

[sebfr]

Why i play BIPH ?

Potential gains : 48.8% (1.68 -> 2.50)
Potential loss : 12% (1.68 -> 1.50)

Ratio : 48.8 / 12 = 4...Good ratio (min. > 3) 

If i am wrong i am waiting that an another downtrend will end to buy another shares...

[sebfr]

An another candidate : ECR

Buy at 2.440
target at 4.20
stop loss at 2.200
Ratio : 75 / 10.9 = 6.88...Excellent ratio (> 5)

Technicals :
Double bottom
Candelstick : Bullish Engulfing Pattern...

[sebfr]

Hi,

an another candidate...EMED

Buy at 0.550
target at 1.000
stop loss at about 0.450
Ratio = 81.88 /22.22 = 3.68...Good ratio

Technicals :
Double bottom

[wrangler]

possible doublebottom

[sebfr]

Great find Wrangler....

[sebfr]

Hi,

an another candidate :
BUKS

Buy at 0.272
target at 0.4590
stop loss at 0.2590
Ratio : 68.75 / 5 = 13.75 !!!! Excellent !

[sebfr]

Hi,

an another example of the power of this strategy : TLPE -> 100% gains in 2 weeks !!!

[sebfr]

Why i do not have buy shares of NWKI ? Not enough divergence on MACD...

[joozt]

there is double bottom coming @ our EYII

isnt?
i dont know how to calculate these ratios
and to post the chart 

[sebfr]

Hi,

Yes a possible double bottom is preparing and if we see chart of EYII we can note that 0.025 is also a good support. We have 2 double bottoms !!!! 1. May-july 2005 to today 2. november-december 2005. Good new for us...Few risk to be wrong !

But wait a little before buying shares...We need Confirmation .

To post your charts, have a look at these topics :(very clear)
http://www.3stocksonfire.org/trading/index.php?topic=3962.0

Ratio ? Can you explain me what you don't understand ?

Good trades 

[joozt]

hi

about these ratios
for example with BUKS:

Buy at 0.272
target at 0.4590
stop loss at 0.2590
Ratio : 68.75 / 5 = 13.75 !!!!

where does this 68.75 and 5 come from, little confusion...

but seems to be a powerful tool!
Do you recommend some books about TA? Just to get a practical xmasgift 

greetingz
joozt

[sebfr]

Hi Joozt,

about ratios :
Example :
Buy at 1.000
target at 1.300
stop loss at 0.900
Ratio = Potential gains (in %) / Risk (in %) = ((((target * 100) / buy)) - 100) / (100 - (stop loss  * 100) / buy) = 30(%) / 10% = 3...For 1 dollar in market i can gain 0.3 dollars or loss 0.10 dollars. The ratio Reward / Risk > 1 -> in our Favour..More the ratio is higher more transactions are in our favour...
I hope i was clear..

Concerning books : Forget them for now...You have great sites where you can find basic informations about TA. I recommend : Stockcharts.com or Incrediblecharts.com or Investopedia.com...


Have a good day

[sebfr]

EMED at 3 years :