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Figure 13.1
Revival Buy
Copyright 2000, TradeCast® Ltd. |
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Second, you want to know that the buyers have reasserted themselves, that they have become active in the stock again and that there is evidence of strong buying interest in the stock. |
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Look at the last trading day to be sure that the stock closed up for the day and that the closing price is in the top 25 percent of the trading range. That tells you that the buyers have driven the stock up strongly and have resisted any selling pressure late in the day. The buyers are back in control. |
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Look at the Japanese candlestick bar marked as 2 on the chart on the last trading day. Can you see how the buyers took control and drove the stock back up hard? |
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Third, you want to know that the stock is still in an uptrend. Why? Because when you take a position in a stock, you do not want to be bucking the trend. |
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Look at the closing price on the last trading day to see that it is above the 20-day moving average. From the chart can you see that |
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