Here is a new chart for us to discuss... RTP
This recent pattern is called a saucer. I used well understood pattern power to take some good profits. I managed to buy my shares during the low part and ride it up until today. Life is good!
Actually, it wasn't entirely a bed of roses. I was very busy trading the shorter time frames and not focusing on the bigger picture. When the market took a dive, I would sell, even if at a loss, just to protect the principal. Then, when the market completed its little tizzy fit, Price would improve and I'd get back in, often at a higher Price. This is called buying high and selling low.
More recently, I decided that a Market Fu master would not behave like that. With my long term goal of Mastering Market Fu in mind, I began to do some mental exercises. When the mind is not focused on a bigger picture, it is justifiable to exit a winner early. When the mind is calm, little turns inside of a powerful up-trend are easily recognised as noise.
While I have not yet perfected mental stillness, I have been well rewarded for the progress made.
Oh, by the way, I'll be keeping an eye on this stock for another reason... another chart pattern.
I am expecting a small Price pull back tomorrow for reasons discussed in my future Bollinger Bands article(s). I am not expecting Price to fall below today's open. If Price falls below $100 and closes, then something very very bad must have happened. Once Price has recovered from this pull-back, I'll be looking for at least a week of raging bulls running and crashing through anything that resists them.
The larger picture, just barely visible in the accompanying chart, is possibly the formation of a "W" pattern. W's (more-so than the saucer) are well know patterns. Since this current saucer represents... ummm... 119 - 79 = 40 dollars of movement, (wow) The completed pattern should be at about.... ummm... 119 + wow = 160 dollars! Another $40 dollars of up-age could be possible.
Now, lets check that... On a larger time-frame, has the stock ever been that high before? On the four year, weekly chart, we see that in May of 2008, Price was a whopping $558 and change. So, is it possible to make $40 on this one trade? Easy! I'll take a bunch of those please.
I'll be looking to re-enter tomorrow or Monday. Then I'll try my best to stay calm and focused on the bigger picture through the little setbacks the market occasionally experiences.