This is a little venture that started out with a recent foray into DES Destra Corp:
Basically, I'm looking to post stocks here that fit the technical pattern for a reversal pattern know as a rounding bottom or saucer pattern. It's described in Edwards and Magee in clear terms (see Destra thread link above).
Basically only post charts which probably will fit the pattern or are very close to it. We wont know for sure so make a good call. Hence volume confirmation need not be perfect but is desirable (as in Destra). You'll need to zoom into a shorter time period sometimes to see the volume pattern. Strong or quickly improving fundamentals reduce our risk exposure even further.
We're basically trying to get in on stocks that are about to zoom up after completing a bottom reversal- hence not picking the bottom but picking the breakout. To state the obvious there's no point in posting stocks which have completed the pattern (except for illustrative purposes), as the 'easy' or low risk money has already been made.
I'm focussing on this pattern as it appears to be more predictable than other patterns (eg triangles). Only issue is finding the perfect candidates as the pattern is not that common and can be hard to spot while it's being formed, it's worth the effort if we keep an eye out. Look for breaks in downtrends and consolidations with drops in volume as prices stabilise.
I am just experimenting with this at the moment so if someone has more expertise in this pattern please correct me.
Charts which illustrate what we're after appear in the next post: