Chart Topping Patterns to Avoid

Climax Top Off a Parabolic Move This pattern occurs when a stock rises especial quickly visible of a base and gets overextended. Stocks in a Parabolic Move can dual or triple in its value in a very short time ( usually less than two weeks ). As an shareholder you certainly don’t want to be one of the last passengers on the legalize and get quickly thrown off. Some examples of this prototype are exposed below. Heed the quick move upward in MCOM back in July. In 5 trading days it went from $20 to $57 for a produce of 185 %. Also notice that on the biggest position day ( point A ) that it gapped up strongly to $53 and then closed weak around $41. This was the peak Top Off the Parabolic Move. As an capitalist you should have obsessed this day if you had bought the stock in the $20’s. in the meantime you certainly should have not bought this stock this day. Notice how the stock eventually pulled all the way back to $20 by basic August ( point B ). Another example of a peak Top Off a Parabolic Move is established by LWIN. This stock skyrocket from $30 to $95 in 10 trading days for a whopping gain of 217 %. The Climax apex occurred on the 10th and 11th days of trading as the volume peaked ( point A ). The stock then sold off and retreated back quickly to around $42 by late November. As you can see stocks that go addition very quickly, in a Parabolic Move, can again come down just as swiftly. My advice is if you buy a stock and it doubles or triples in value in a very short period of time ( 1 to 2 weeks ) holding your profits and congratulate yourself for a job right done. If you wax mean thence you could lose most of your gains as the superior examples indicate. Furthermore if your buying a stock in this type of move be very careful and stopwatch out for the Climax Top if the stock is trading on its biggest volume day.