Take A Good Look
When you look over price charts day after day after day, you start to develop
an acuity to spot patterns that may not look so good to novice chartists. What
may not look good to someone else or appears choppy, may just hold a hidden gem.
11:32:49
Arch Coal (ACI)
appears to have put in a high level double bottom along with a Trend Pivot
Pullback. ACI is up 0.26 to 22.35 and is carrying a 3-month
relative strength ranking of 89 from TradingMarkets.com.
We will see how
(
ACI |
Quote |
Chart |
News |
PowerRating) plays out in the ensuing trading days, but
patterns like this — fake-out moves combined with short-term support — often
have shaken out the weak hands and have cleared the way for the stock to trade
higher. Learn to read price action in charts, don’t just look for simple
textbook definitions of patterns. When you understand the spirit of the pattern
and why the psychology behind it traces it out, you will be on your way.
Until tomorrow,