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Figure 13.2
Results of the Revival Buy
Copyright 2000, TradeCast® Ltd. |
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Your second pattern is actually trading the same market psychology as the revival buy except that this setup alerts you to a possible short selling opportunity, as shown in Figure 13.3. |
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The criteria for the revival sell setup are just the reverse of the revival buy: |
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For the day before the last trading day, the stock closed up for the day with the closing price in the top 25 percent of the trading range. The buyers had control, trying to drive the price higher. See 1 on the chart. |
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For the last trading day, the stock closed down for the day. The closing price is in the bottom 25 percent of the trading range. The sellers have rejected the buyers and taken firm control, driving the price sharply lower. See 2 on the chart. |
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For the last trading day, the closing price is below the 20-day simple moving average. You want to confirm that you are still in a downtrend. |
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