Читать книгу Encyclopedia of Chart Patterns - Thomas N. Bulkowski - Страница 99

In Swift Transportation Co. (SWFT), I played the big W differently. I bought when price returned to the launch price, expecting a strong move higher as oil prices were trending downward: “Sell reason: The stock has made a large down move today, following the market lower and others in the industry [are] down. I believe this will move lower, forming a handle to the big W.”

A handle did form, and I sold in the early part of that development at 19.25, for a loss of 8%. I watched from the sidelines as price climbed to 33.66. I missed out on a potential gain of 75%. Sigh.

Again, I picked the right stock, but it took me out when it formed a handle before making a strong push higher.

I don't have a lesson to share except the idea of riding price higher after it reaches the launch price might have merit. Test it to be sure it can work for you and your markets.