GREY:FGBDF - Post by User
Comment by
Dojitrader15on May 05, 2017 11:38am
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Post# 26208796
RE:Open gap 0.61
RE:Open gap 0.61Yes, Stock20 it rose parabolically which is why I raised caution in Feb. and when you add gaps to a parabolic move....you just know it's going to come crashing down.
Again I don't make the rules. I just follow them. My rule is never buy a stock that is moving upward parabolically and always be aware of any gaps within the parabolic move. You will see the first gap at 0.33 is called a break away gap, the second gap is merely a 50% gap showing the move is half over which occured at 0.53. The stock will then exhibit what is called an exhaustion gap to which a final blow off occurs coinciding with a top in the current trend.
All these signs plus the indicators showing a well overbought stock, and an imminant correction.