Furthermore, I think that a reversal to the upside could be a possibility in mid-March, if the head and shoulders follows through on the daily. In the earlier post, I discussed the measurement rule and how it can be used to predict target prices. On the weekly chart, Ire went from its low of 0.66 before topping out at 20.18. The duration of this move was 6.5 months. From its highest high, 6.5 months can be measured out, leaving Ire at around $1 a share in late March early April. However, it can find a floor prior to exactly 6.5 months, thereafter forming what could be a big W.
so, what does this mean to a lay person and how can I make money .
ReplyDeleteFirst, you want to make sure you have your rules in place once this stock is bought. Your rules will allow you to cut your losses quickly if the stock goes the wrong way. However, if it moves up, you want to take your profit slowly. This will allow you to hold during consolidation regions while Ire forms bases. The bases are healthy corrections needed in order for the stock to move higher. I will discuss what rules you need in a later post. The rules will be geared towards position trades and can be used for swing trades as well. Lastly, in this chart, Ire appears it may be wanting to go higher as a result of what looks to be a reversal pattern.
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