# Bottom Reversal Signals



## Sakk (27 June 2008)

Buy stop 39.23 limit 39.62 
ISLP 37.76

filled @ 39.23 time 23:33:39


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## Sakk (1 July 2008)

*Re: NXY - Bottom Reversal Signal*

3 bar stop rule kicks in, which is to move from ISLP to b/e after 3 bars

moved ISLP to b/e @ 29.23


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## Sakk (2 July 2008)

*Re: NXY - Bottom Reversal Signal*

stopped out @ 39.22 

B/e trade...


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## Sakk (13 July 2008)

3 new entries

ANR ACI  BZP

Had a buy stop limit order on MEE however not filled.

ISLP for all three positions has been moved to B/E.


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## Dutchy3 (13 July 2008)

Hi Sakk

Those big dirty black candles look very imposing ...

Perhaps these days are a signal that the bulls have been put on notice ....

Bottom reversals should also provide radid comfort on confirmation .... even a 2 - 3 day wait might be too long ...

Here's PDN hovering around its 30 WEMA and also at the end of a SHS bottom pattern


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## Sakk (13 July 2008)

Dutchy3 said:


> Hi Sakk
> 
> Bottom reversals should also provide radid comfort on confirmation .... even a 2 - 3 day wait might be too long ...
> 
> Here's PDN hovering around its 30 WEMA and also at the end of a SHS bottom pattern




The best bottom reversals head straight up from the get go and so would any other best case buy signal.  However I've found that 3 bars to be the best balance between allowing the trade sufficient time move in the direction of the trade and getting stopped prematurely.

The bottom reversal day you point out on PDN in my opinion is a very weak signal especially considering that PDN has also been underperforming the energy sector since it formed a double top in April 2007.

PDN has only turned into a LONG candidate since it broke the previous pivot high of 6.40 in Feb 2008.  A bottom reversal in the blue box area could be a good long trade?  But then again........


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## Sakk (16 July 2008)

BZP and ACI have been stopped out for B/E trades.

Still in ANR and stop was moved to 91.08 however when adjusting the stop in IB I noticed the open profit was way out of whack.

A merger was announced, CLF to buy ANR for a premium of 35% or $128.12 per share......


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## tech/a (17 July 2008)

Watching with interest.

Some excellent exhaustive volume on some of these.
A pre requisite in my view for any change in direction of price.
*ANR ACI*
Saak
When its a US stock can you just point that out saves me flicking through--ta.


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## doogie_goes_off (17 July 2008)

Was following TOL and BXB to see which would bottom out first, both presumably were waning due to fuel price, both turned around on announcements. BXB said "we are going great" and TOL said they were bailing out of Virgin, can anyone see any other T/A reasons why these would trend up off this bottom?


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## tech/a (17 July 2008)

doogie_goes_off said:


> Was following TOL and BXB to see which would bottom out first, both presumably were waning due to fuel price, both turned around on announcements. BXB said "we are going great" and TOL said they were bailing out of Virgin, can anyone see any other T/A reasons why these would trend up off this bottom?




I see nothing to suggest both of these have begun to turn around.
If anything TOL seems to be basing.
No interest technically from both yet.


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## Sakk (17 July 2008)

tech/a said:


> Saak
> When its a US stock can you just point that out saves me flicking through--ta.



No probs 

Moved trailing stop to 98.38


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## Sean K (18 July 2008)

Qualify Sakk?

Need a good candle tomorrow for confirmation.


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## Sakk (18 July 2008)

Stopped out of ANR at 98.27 for a 1R Win


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## Sakk (18 July 2008)

kennas said:


> Qualify Sakk?
> 
> Need a good candle tomorrow for confirmation.




Short answer is no.  First rule is price must be above the 200DWMA.

The simple trendline shows a downtrend.  Until it breaks above and forms two higher highs (the trend changes to up) I'd only be looking at this as a short candidate.


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## MRC & Co (18 July 2008)

kennas said:


> Qualify Sakk?
> 
> Need a good candle tomorrow for confirmation.




Yes, that is how I trade these set-ups Kennas and have done quiet well out of them.  I find them quiet reliable.  

Though, to form a hammer, you would want to see a white candle not a red one (many don't care, as long as the tail is long).  But the high volume on your chart (related to the reverse candle, shooting star or hammer) is definately a VERY important aspect IMHO.  

Note:  I find inverse hammers or hanging man rubbish reversal trades personally.

I also like to see more of a trend in place before the set-up, some of Sakks examples are a little too 'sideways' for me.  

If the hammer or shooting star closes a previous gap (rare), or hits a previous support/resistance, I take the trade without hesitation.  

Cheers


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## Sakk (25 July 2008)

A bottom reversal buy signal was triggered in the US Exploration & Production Sector.

FST XOP XTO and CHK have all triggered buy signals.

Long FST 57.45 limit 58.02 ISLP 52.83


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## Sakk (30 July 2008)

Moved trailing stop to 1 tick below close.


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