Saucer pattern/Rounding bottom stocks

[GreatPig]

Kauri,

I don't think it's finished the saucer pattern yet. The current price of $14.88 is still within the saucer by my chart.

Also, this is a saucer during an uptrend, so I don't know how well the theory holds. I gather saucers are supposed to be rounded "bottoms", implying a trend reversal.

Cheers,
GP

 

[Kauri]

Great Pig..
Some saucers/rounding bottoms do occur at the bottom of a trend and signal a reversal, but a lot also occur in an uptrend as a consolidation pattern and can signal a continuation of the trend. My preferred method of trading a saucer is to enter on the upside leg, exit on the first sign of retracement after it has broken through the lip, see if it becomes a cup by forming a handle, if it does then I re-enter on the break of the top of handle pattern.
My comment on LEI falling in a hole was tongue in cheek.. re Lane Cove.

 

[Kauri]

Sorry, posted wrong chart.

This is LEI. The first cup/handle formed in an uptrend from $7 to $13.
The current potential cup/handle has formed in an uptrend from $10 to $15.

 

[tarnor]

IOH count?

hold at 1.00

 

[RichKid]

Kauri,

Also, this is a saucer during an uptrend, so I don't know how well the theory holds. I gather saucers are supposed to be rounded "bottoms", implying a trend reversal.

Cheers,
GP

Edwards and Magee classify it as bottom reversal pattern and I find that to be the safest but since they're rare I have been weak and trade them at other times too- but I have not stats for that, just logic. Generally the longer it takes the stronger I'd say the signals. I also like the methodical classification system used by E&M btw, easier to study and apply that way.

 

[RichKid]

IOH count?

hold at 1.00

Hey Tarnor,
Don't think so from the chart you posted imo more like something else. See the first few posts in this thread for more detail on what to look for from a theoretical perspective. I like GP's and Kauri's examples, try to match it to those. Otherwise you can post IOH in the breakouts thread, although strictly they should be breakouts to new highs. Let's keep searching for more, plenty of room for all to enter.

 

[Kauri]

UGL

 

[Kauri]

or QGC

 

[Kauri]

maybe MTT

 

[Kauri]

and for something totally different. NUF

 

[RichKid]

FAR has been spotted by Kauri too in this thread. Entry set up may still be on.

 

[GreatPig]

FKP looks like it's forming a small saucer now.

Maybe that dude will be able to buy himself another $5m boat soon

And HST seems to be getting there too (I hold this one).

Cheers,
GP

 

[Kauri]

Apart from rounding bottoms/saucers/cups.. rounding tops can be traded too. Not so many of them as you need to be able to short them so only available via cfd on top 200-300.

 

[Kauri]

Is the UGL saucer/cup flagging

 

[doctorj]

You're a machine!

How many charts do you eyeball each day to find these?

 

[Kauri]

You're a machine!

How many charts do you eyeball each day to find these?

only the ones
a) that average $100,000 a day over 20 days
b) and also have only 3 letters in their ASX code.
Only post a few so as not to clutter up Joe's server...

 

[Kauri]

LEI has finally made it to the lip.. will watch for a potential handle..

 

[Richard Willoughby]

Just started looking at tech analysis, so take no notice of anything i say.....
MRL seems to have formed an inverse head and shoulders with bigger lows, macd crossed zero line, volume up, rsi indicating overbrought May retrace a bit? My downtrend line definitely broken. Interested in anyones comments..

 

[Kauri]

Entered LEI on a developing saucer/cup pattern, but it seems it may have fallen in a hole. ( 25 Oct. at $14.50 )

May have forgotten to form a handle :fu: I'm not complaining though.

 

[Kauri]

Is the UGL saucer/cup flagging

Falling back now, but was a good quick trade..