RE: One Bi-Polar StockWell recently the price is up and down as seen in my annotated link(a well defined down channel),and the blue dashed lines are approx the same distance apart,paralelled from the high to the low and crossing the lower trendline(downside target).So if you use the theory of sell at the top and acquire at the bottom,the next place to buy would be at aprox $67 .Or you could use a long/short strategy in the same channel.Exactly why this window is important(IMHO)is that it is generally accepted to be a support and resistance area(other theories/reasons elude me at this time,sorry).Eg:If the price is trading above the 20ema then it is generally accepted to be in an uptrend and the inverse then it would be in a downtrend.Most gaps(windows) do close but not all.They don't "have" to close, but because they act as support and resistance when the price gets near them,they usually close.If AGU had an open window at $11.74(hypethetical) at this time there is no reason to take it into consideration because the price is too far away.Currently since this and many many other stocks have the similar downtrends in place,these windows are things I take into account because it has been my experince not to under estimate how far down the price will go.There is no way I am calling a bottom or a top for any stock but at least getting an idea of where the stock could end up(either the high or the low).I don't follow Elliot wave but I'm sure somewhere out there is an EW guy developing his upside and downside targets useing his plan.I'm not a day trader and I'm more interested in a 1-6 month time frame.So,the price could have held up at say $77(that was an S & R area) but it did not.It may be that $73 ish does hold up.Great and it goes sideways a bit and you figure out where resistance is on the way up.If it breaks below $73 then what.As the handle suggests,I am long stocks.If I was to get some AGU,it would be at 67-68.If it doesn't get there and I miss it,that is the way it goes.I don't want to buy stocks in a downtrend.I'd even get in if it was going sideways I'd probably get some.So at say $67,if that was not to hold(like the$77) I feel my current downside is to $59.I am stairing at a US chart while doing this.60-62 downside risk on the AGU.TO.Only the MM's know where the bottom is.Fibs,pitchforks,channels,chart patterns,20ema and windows and dojis.Support and resistance.Many things to consider and I am just going by charts,no fundementals and you may know other things that give you the confidence to trade/invest in AGU as you do.T/A is just as improtant as the fundementals and more so when there is no tide to lift all boats so to speak.I don't own any AGU,this is just something to consider.Talk it up with one of your T/A friends for their point of view.GLTA
JL