Spinning Tops

[TinGull]

Nice spinning top at an old support/now resistance and also resistance from the top of a WRB. Note it's also happening on low volume....

[ranj]

	Quote:	TinGull
	Nice spinning top at an old support/now resistance and also resistance from the top of a WRB. Note it's also happening on low volume....

Looks like a great setup from a long-term short
Seq of events of Distribution
initial Buying Climax, 9/24 first transfer of ownership.
Supply overcoming demand on 10/29
Upthrust on 11/9 signs that the distribution period is ending
11/12, Sign of Weakness (SOW) as we break the range bottom and trend line from Aug the Lows.
Test of the area of "last point of supply" occuring today.
Looks like a high prob short with target of the Aug Lows.

Hank pruden does a great job explaining the these sequence of events in his book.

http://www.hankpruden.com/

[TinGull]

Nice writeup, ranj. I initiated a short on it about 15 minutes ago at 12.51 (that was the stock price...I actually entered an options play) and am looking for those lows, too. We'll see...I've got a DEC position on so I might roll it out if price doesn't reach there in the next 2 weeks.

[MrPaul]

	Quote:	ranj
	Looks like a great setup from a long-term short Seq of events of Distribution initial Buying Climax, 9/24 first transfer of ownership. Supply overcoming demand on 10/29 Upthrust on 11/9 signs that the distribution period is ending 11/12, Sign of Weakness (SOW) as we break the range bottom and trend line from Aug the Lows. Test of the area of "last point of supply" occuring today. Looks like a high prob short with target of the Aug Lows. Hank pruden does a great job explaining the these sequence of events in his book. http://www.hankpruden.com/

How is that book ranj? I heard from another trader that it did the Wyckoff method justice and was an interesting read.

[ranj]

	Quote:	MrPaul
	How is that book ranj? I heard from another trader that it did the Wyckoff method justice and was an interesting read.

It's pretty good. It is broken up into three sections. The middle section goes over wychoff's methods of distribution and accumulation. As a matter of fact I started to reread it after my post above just to make sure I saw things right.

[james_gsx]

Good thread Tin. Lately I have been hearing a lot about TRLG, when I looked at the chart I see a rising window that is so far holding it's support. We obviously had a spinning top against resistance, but now it looks like a spinning "bottom" forming at a possible support level, but I'm not 100% sure if that's what you would call it.

1 - Let's assume it is a spinning bottom, since it is on support would this be a good area to go long if you got a confirmation?

2 - If it's not a spinning bottom, how should I perceive this candle?

Thanks Tin, and whoever else chimes in.

[MrPaul]

	Quote:	james_gsx
	Good thread Tin. Lately I have been hearing a lot about TRLG, when I looked at the chart I see a rising window that is so far holding it's support. We obviously had a spinning top against resistance, but now it looks like a spinning "bottom" forming at a possible support level, but I'm not 100% sure if that's what you would call it. 1 - Let's assume it is a spinning bottom, since it is on support would this be a good area to go long if you got a confirmation? 2 - If it's not a spinning bottom, how should I perceive this candle? Thanks Tin, and whoever else chimes in.

James,

Notice how the market was gapped UP through resistance. Any moves to the downside here that show lack of professional interest (Low volume, Narrow Range down days) would be an indication of higher prices to come.

I wouldn't call this a "spinning bottom", more of a pullback.

Hope that helps!

[TinGull]

Totally with MrPaul on that one.

[ranj]

Agree as well, also notice the peak in March, has been acting as support. Every bar that goes above or below that level tends to be a wide range bar.

[brownsfan019]

James,
Here's what I see:




The candle in question is more an inverted hammer than spinning top in my opinion. That of course is a BEARISH undertone.

I do not see a support level right here. I would like to see a test of the 17.50-17.00 area to consider a long.

Note - 2 candles ago you could have taken an aggressive short based on the previous level that held.