the pgl saga
2 charts attached. Those who went on to do the Gann stuff, you will
recall the pgl example we spoke of, and eventual buy on the Friday. The
break occurred over past minor highs, then some news later in the day;
my que to sell the following day. We gapped up nicely Monday, but alas
Tuesday's action does actually make the sell look poorer. Trading rules
are trading rules however. Sell on the news.
There have in past months been more than a few examples where stocks
have continued higher even after the news. Perhaps a rule can be
updated from time to time. So next time on such a gap up, perhaps one
could set a exit price say three points (in this case cents) under the
days open price, three cents under $2 in this instance, and hold for the
next day's action if the the 197 does not break. (It's a big gap up on
Tuesday - bloody thing)
Wed proves Tuesday's bar as an island reversal (form reading), a trader
definitely wants to be out on such a bar. A stock rarely goes higher
after that, for at least some weeks anyway. Note also the island
reversal early last September. As an exercise, you might want to do a
day count, try both trading days and calender days off both the island
reversal days, and see what eventuates, if anything.
Shares on issue just 33 million, not a lot. Worth watching to see if
latest top is exceeded at a later date.
Thanks once again to all who took part in recent classes, I look fwd to
doing a further update class some time later in the year. Emails will
continue when there is something worthwhile to point out.
PGL 1 - PDF
PGL 2 - PDF