Goldtent TA Paradise

It’s Alive

1. Patrick says:

   October 17, 2019 - 10:27 pm at 10:27 pm

   Nice tightening formation that led to the breakout.

   • Karl says:

     October 18, 2019 - 2:11 am at 2:11 am

     Exactly right. I have not looked at how narrow Bollinger Bands had gotten, but they really are one useful sign in stocks like this when you have extra cash and you want to gamble some more.

     Another I use with the tightening that is probably not official TA and may for all I know run counter to standard TA–
     The tightening here occurs while the prices are have been subtly trending upwards for a while. If I look at an enlarged image I don’t see the upward trending since late May, 2019, as well as I do on the unenlarged image. However I used to laboriously look at the statistical significance of price change versus time. From that experience I would bet that there was pretty strong evidence of a subtle rise in price over this period. The meaningfulness of the slight increase in price since late May was more becoming more meaningful than the waning influence of the down in price since late March. One trend (subtle up) was subtly replacing another in influence.

     (I will add that if NVO.v’s price backs down more than a little bit and I had no compelling reason to own it, in someone else’s position I might have a low threshold for selling some or all of it.

     Having gambled on NVO.v since early on and sold some after it started declining, I happily own some as a more or less free gamble and may be prejudiced to sound too optimistic about it. I would argue that the general trend of news or PR is such that, whether correct or not, recent news/PR could enhance any chart patterns in anything but a down market. But that would be no great argument not to take a quick profit.)