ultimately decided to order 30 shares at 3.82, and that i'm definitely looking for a price of 15.
Saturday, October 1, 2016
RGSE at 3.81 Monday morning, and as soon as it fills you place a stop order at 3.75, to sell. it could go to 14 next week. if it does that it would only be for moments, and if we can't sell it on the day it rallies to anywhere above 9 then the next day we try to sell it at 9. also, if u look at it during the day and it's anywhere above 10, and you feel like selling it at the market, just do it.
the rest of this RGSE post is just a story, except for the link to a chart at the end.
it was really cool the other day because i was watching RGSE up above 7, and it was making a pattern, three minute bars, and i was thinking "this is really great". come to think of it i could have (this was paper trading) placed a sell order at the market right then and i would have been assured of a sale, and probably very close to the top, which turned out to be a significant top. the pattern it made was a big green bar. it had been rallying more moderately and then it jumped up. i'm pretty sure this all happened in one day. ok, now i remember it and i know it did. it climbed in waves in the morning, and then early in the afternoon - NY time, i'm thinking - it made two big green three minute bars, and then right after that it topped out and now it's down 50% and i want to buy it again.
watching this was a great lesson. it did exactly what i thought it would do, to the extent i had an exact idea of what i thought it would do, only a day later than i said. i thought it could stop at 5.50, based on the chart from earlier in September, but i'm sure i also thought it might go to 7, which was marked by a classic pattern, the inverse hammer top in the 1st half of September plunge. then i was actively watching it as it went above 7 on the day of the big green candle. in the intraday chart it was making a very complete sell signal there ... but i was reluctant to sell it, thinking maybe the move would carry and break out and head for, you know, wherever. now it's down under 4, so, if we had sold (if we had owned it) at 7, we wouldn't be unhappy about it. Next: it's making a very nice buying pattern on the intraday charts, and now i understand it better. Basically, the target is 9. i mean, it sort of should be headed for 12, here. if it gets to twelve, that's almost certainly a top, and then it could start building a flag. my new basic rule is, if it's not a flag, it's not a buy. there are exceptions, but this isn't one of them. well, it is, but for a big, long term type move, it usually has to come out of a flag, or maybe always. OK, looking at this very carefully, the likely next top is at 11.80, and then it can start to build its flag for a move to 25. i'm optimistic about the company for the not too long term, but really making money in it now will require playing the fluctuations. actually, 11.80 should be exceeded on the next move, which i imminent, but only for a moment. after that the flag should return prices to essentially the current level. This two year chart was helpful.
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