Arrow shows trading after hours! Better to exit when the RWB pattern first disappeared. Best to hold stocks in RWB up-trends.
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Blog Post: Day 12 of $QQQ short term down-trend; Adapted GMMA charts of $BA, $NFLX, and $CAVA illustrate the patterns to look for before trading any stock or ETF
We want to buy or hold stocks/ETFs that are closing repeatedly (dotted line) above all of the shorter averages (red lines) which in turn should be rising above the longer term averages (blue lines) so that there is a white space between them=RWB pattern. The opposite pattern, BWR, shows a down-trend. BA shows a RWB pattern turning into a BWR pattern. There is no excuse for riding a BWR pattern. This is a daily chart. A weekly chart shows longer term patterns the same way. When the white space disappears it is time to exit until a new trend develops. NFLX and CAVA are also showing signs of weakening. Wait until a stock closes back above all of the red lines. We want the closing prices (dotted line) to be leading the red lines higher.
CAVA is no longer in a RWB up-trend.
Blog Post: Day 9 of $QQQ short term down-trend; 21 US new highs, 79 lows and 4 at ATH; I am 100% cash; My adapted GMMA daily charts tell the short term story; when the RWB pattern disappears, I exit; see example charts of $QQQ,$DIA,$SPY,$NVDA,$TSLA
My adapted daily GUPPY, GMMA charts tell me when an up-trend has ended. My former student, Richard Moglen, tells how to build them using TC2000. As long as the shorter term (red) averages are rising above the longer term (blue) averages with a white space separating them, RWB, the up-trend is intact. When the white space disappears it is time for me to raise stops and/or exit. When the pattern reverses to BWR, I am out or short, see TSLA. The dotted line is the daily close. Check out these charts. A picture is worth how many $$$$?
